Those who file ITR regularly can do cash transactions of more than 1 crore in a financial year from bank, post office and co-operative bank account without giving any TDS.
There is big news for people who withdraw large cash from the bank. The government has brought a new rule in the country through the Finance Bill 2019. Under this rule, if a person combines all the accounts of the same bank or co-operative bank and post office, withdraws more than one crore rupees in the form of cash within a financial year, then he will have to pay tax. This tax will be charged as 2 percent TDS. However, this is a threshold limit of one crore rupees for those filing income tax returns.
Such a threshold of turnover below which goods and services can be kept exempt from tax. This is called the threshold limit. Turnover is taxed. But those who keep the turnover below the threshold limit of the turnover are outside its scope.
TDS on those who do not file ITR
Those who have not filed ITR for the last three consecutive years. The government had reduced the threshold limit for him to Rs 20 lakh in the 2020 budget. This means that if a person who has not filed ITR, withdraws more than Rs 20 lakh in cash in 1 financial year, including all the accounts of any bank or co-operative bank and post office, then he 2 percent TDS will have to be paid.
ITR filing waiver
Those who file ITR regularly can do cash transactions of more than 1 crore in a financial year from bank, post office and co-operative bank account without giving any TDS. They will not have to pay 2 per cent TDS. Suppose a person has an account in three different banks, then one can withdraw one crore rupees or three crores cash from every bank without any TDS.
There is a provision of 2 per cent TDS under 194N for cash withdrawals of more than one crore rupees in a financial year. On withdrawal of more than one crore rupees, these TDS are deducted only on cash withdrawal. TDS is not deducted if someone has done transactions by check or online.
These people get a discount
However, under section 194N, some classes are exempted from TDS on cash withdrawals exceeding 1 crore. These include individuals notified by the government, bank, co-operative society, post office, banking company, government.
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