Cash withdrawals with TDS: Exciting news! For additional cash withdrawals, TDS may now be required; see withdrawal limits and regulations

 Cash withdrawals with TDS: Exciting news! For additional cash withdrawals, TDS may now be required; see withdrawal limits and regulations

TDS on cash withdrawal: File an income tax return, according to experts (ITR). Cash withdrawals have also been impacted by this.

The time for paying TDS for cash withdrawals online has passed. Nonetheless, many continue make purchases with cash. Of course, cash is required for payment. You take out money from the bank for this purpose. But did you know that if you withdraw cash after a particular threshold, you can be required to pay TDS? TDS on cash withdrawals under section 194N of the Income Tax Act are effective beginning on September 1st, 2019, or with the 2019–2020 fiscal year.

Limit on Yearly Cash Withdrawals

A person must pay TDS in accordance with section 194N of the TDS Act if they remove a total of more than Rs 20 lakh in cash in a single fiscal year. Additionally keep in mind that this limit applies if he hasn't submitted an income tax return for the previous three assessment years.

A person who has submitted all or any of their income tax returns in the previous three assessment years would be required to pay TDS on cash if they withdraw more than Rs 1 crore total in a financial year, according to the official income tax website. to be paid. need to pay

Who may subtract TDS from cash

If you withdraw more cash than is allowed, banks or post offices will take TDS from your payment. When an individual makes cash withdrawals from a bank account or post office account totaling more than Rs 20 lakh to Rs 1 crore in a fiscal year, the fee is subtracted. Yes, you are not required to pay TDS if you are a central or state employee, a bank, a post office, a business correspondent of a bank, the operator of a white level ATM of a bank, or a person who the government has notified on the advise of RBI. To do.

how much tax is taken out

If the person making the cash withdrawal has filed an Income Tax Return (ITR) for any or all three assessment years, TDS will be deducted at the rate of 2% for cash withdrawals exceeding Rs 1 crore.

It is important to note that the following information is subject to change without notice.