New Delhi: The government has taken a new decision regarding TDS. Now, cash withdrawals above Rs 1 crore will attract TDS at the rate of two percent. This decision will come into effect from September 1. The revenue department gave its information on Friday. The Central Board of Direct Taxes (CBDT) said that in the current financial year till August 31, 2019, those who have already made a cash withdrawal of Rs 1 crore, will be charged TDS of 2 percent on all subsequent withdrawals.
The government has made a provision to take TDS at the rate of two percent for cash withdrawals of more than Rs 1 crore in the Union Budget to reduce cash transactions. Regarding TDS, CBDT stated that this provision will be effective from September 1, 2019. TDS will not be deducted on cash withdrawals made earlier.
However, cash withdrawal under section 194N of the Finance Bill will be calculated from April 1, 2019. In such a situation, if a person has already made one crore or more cash withdrawals from his bank accounts, post office accounts and co-operative bank accounts before 31 August 2019, then TDS will be deducted at the rate of two percent on cash withdrawals after that.
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