A new Section 194N proposed to be included in Income Tax Act. If the withdrawal of cash exceeds Rs. 1 crore in a financial year a 2% of TDS will be deducted by a bank or post office from withdrawn cash of savings or current account.
However no TDS will be deducted if cash is withdrawn by following recipients from bank or post office:
a. Union or State Govt.
b. Banks
c. Co operative Banks
d. Post Office
e. Banking Correspondents
f. White label ATM operators
g. Other persons notified by Govt. in consultation with RBI.
This amendment will take effect from 1st September, 2019
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