Bank Cash Withdrawal Limit- Now you can withdraw this much money from the bank, if you withdraw more than this, 20 percent TDS will be charged
In today's scenario, everyone has a bank account, and usually everyone has a savings account, which has many rules, that are very important to understand, effective from July 1, 2019, the Income Tax Department has introduced new rules regarding TDS (tax deduction at source) on cash withdrawals above certain limits, let's know about it-
TDS limit: If you withdraw Rs 20 lakh or more in cash from your bank account in a financial year and have not filed income tax returns for the last three years, 2% TDS will be deducted.
Promoting digital transactions: The measure aims to encourage digital payments as compared to cash transactions.
Higher limit: For withdrawals of more than Rs 1 crore in cash, the TDS rate increases to 5%.
Affected entities: These rules apply to individuals, Hindu Undivided Families (HUFs), partnership firms, LLPs, companies, and local bodies.
Exemptions: Government institutions, banks, post offices, and co-operative societies functioning as banks are exempt from these provisions.
Compliance requirement: Make sure your PAN details are updated with your bank. If you have already provided your PAN and filed income tax returns, you can avoid the TDS deduction.
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