Tds On Cash Withdrawals

0
104

In the Finance Budget, 2019, it was proposed to levy TDS of 2% on cash withdrawals exceeding Rs.1 crore annually by a person from a bank account or co-operative bank or post office.

It was proposed that the threshold limit of Rs.1 crore shall be seen account-wise.  Hence, if a person is having more than one bank account with a bank, then the threshold limit of Rs.1 crore shall be considered separately for each bank account.However, the Finance Act, 2019 as passed in the Lok Sabha has substituted the words ‘from an account’ to ‘from one or more accounts’.  Thus, now for the purpose of calculation of threshold limit of Rs.1 crore, the aggregate amount of cash withdrawn during the previous year from one or more accounts maintained with a bank shall be considered, i.e., the threshold limit of Rs.1 crore shall now be seen bank-wise.