New Rules for TDS on Cash Withdrawal w.e.f 1st July 2020

New Rules for TDS on Cash Withdrawal w.e.f 1st July 2020

Following entities are liable to deduct the TDS on Cash Withdrawal under Section 194N of Income Tax Act, 1961:

1. Banks (including private or public sector banks)

2. Co-operative banks

3. Post office

Note:

1. The above applicability of new rules is as per amendments in the Finance Act, 2020.

2. The cash withdrawal limit for this F/Y will be considered from 1st April 2020.

3. For filing of ITR for the F/Y 2018-19 last date is 31th July 2020.

4. Rate of TDS is 2% up to 30^th June, 2020

5. This section shall not apply to any payment made to—

(i)  the Government;

(ii)  any banking company or co-operative society engaged in carrying on the business of banking or a post office;

(iii) any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934 (2 of 1934);

(iv) any white label automated teller machine operator of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 (51 of 2007):