TDS rule on cash withdrawal wef 1st September 2019

We would like to update you about the new TDS Rule on Cash withdrawals as per amendment in the Income-tax Act.

A TDS of 2% on Cash Withdrawal will be applicable if

• Total cash withdrawal across all bank accounts under your PAN exceeds INR 1 Cr in a financial year

• TDS will be charged only on the amount withdrawn above INR 1Cr.

• The cash withdrawal limit for this financial year will be considered from 1st April 2019

• If you have already withdrawn above INR 1 Cr before 1st Sept, then TDS will be charged on any subsequent cash withdrawal

Here is the list of persons and entities who are exempt from TDS on cash withdrawal:

1. Government;

2. Banking company or co-operative society engaged in carrying on the business of banking or a post office;

3. Business correspondent of a banking company or co-operative society engaged in carrying on the business of banking;

4. 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 authorization issued by the Reserve Bank of India;

5. Such other person(s) as the Central Government may notify.

For further details, kindly visit your nearest Bank branch or websites.

Assuring you the best of our information service at all times.

Warm regards, Admin