Centre announced 2 percent Tax Deduction At Source (TDS) on Cash Withdrawals exceeding Rs 1 crore from September 1st. Even if an individual withdraws over Rs 1 crore cash before August 31st this year in the current financial year, Two Percent TDS will be applicable. The Central Board of Direct Taxes (CBDT) issued a statement in this regard. This move is intended to discourage Cash Transactions and create Cash-Less Economy.
Cash Transactions above Rs 1 crore prior to April 1st, 2019 won't attract 2% TDS. Tax Deduction under Section 194N of the Finance Act will come into effect from April 1st, 2019. An individual who has withdrawn over Rs 1 crore cash up to August 31st, 2019 from one or multiple accounts, Two Percent Tax Deduction At Source is going to be applicable.
In the Union Budget 2019-20, Centre included the provision of levying 2 percent TDS on cash withdrawals above Rs 1 crore. Decision taken by Union Government won't go down well with the Super Rich and those who carry out huge money transactions.
Cash Transactions above Rs 1 crore prior to April 1st, 2019 won't attract 2% TDS. Tax Deduction under Section 194N of the Finance Act will come into effect from April 1st, 2019. An individual who has withdrawn over Rs 1 crore cash up to August 31st, 2019 from one or multiple accounts, Two Percent Tax Deduction At Source is going to be applicable.
In the Union Budget 2019-20, Centre included the provision of levying 2 percent TDS on cash withdrawals above Rs 1 crore. Decision taken by Union Government won't go down well with the Super Rich and those who carry out huge money transactions.