Tax on Cash withdrawal from bank : Budget 2019-20 I TaxHeal

By | July 5, 2019
(Last Updated On: July 5, 2019)

Tax on Cash withdrawal from bank : Budget 2019-20 I TaxHeal

TDS on cash withdrawal from banks: In order to discourage large amount of cash withdrawal from bank accounts, it is proposed to provide for tax deduction at source at the rate of 2% on cash withdrawal by a person in excess of Rs. 1 crore in a year from his bank account. Some business models, where large cash withdrawal is a necessity, are proposed to be exempted. It is also proposed that the Central Government may notify the persons to whom these provisions shall not be applicable in consultation with the Reserve Bank of India.

Note : Section 194N of Income Tax Act is for TDS on cash withdrawal from banks .

Which can be claimed refund if no tax is payable or can be adjusted from Taxes if Income Tax is payble when Income Tax Return is filed by Taxpayer

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