TDS @ 2% on cash withdrawal from Banks

TDS @ 2% on cash withdrawal from Banks

Finance Minister Nirmala Sitharaman, in her Budget on July 5, had proposed 2 per cent tax deduction at source (TDS) on Rs 1 crore cash withdrawal from “one or more accounts” to discourage high-value withdrawals.

The Finance Bill, 2019, said any bank or a co-operative society engaged in carrying on the business of banking; or post office, which is responsible for paying any sum, in cash, in excess of Rs one crore during the previous year shall deduct an amount equal to 2 per cent of sum exceeding Rs 1 crore, as income-tax.

For detailed understanding of the provisions click here