04/06/2022
TDS on cash withdrawal--
a Banking Company, a co-operative society, a post office-Who is responsible for paying any sum, in cash exceeding 1 crore during the previous year, to any person from one or more accounts maintained by such recipient-person with it, shall deduct tax at source @2% of such sum at the time of payment.
To discourage cash transactions in the country and promote the digital economy-
-The Union Budget 2019 has introduced Section 194N for tax deduction at source (TDS) on cash withdrawals exceeding Rs 1 crore.
-The Budget 2020 has reduced the threshold limit for TDS to Rs 20 lakh for taxpayers who have not filed their income tax returns for past three years.