TDS ON CASH WITHDRAWAL FROM BANK/ CO OPERATIVE BANK / POST OFFICE

In order to discourage cash transactions and move towards cash-less economy, a new Section 194N has been inserted under Income-tax Act with effect from September 1, 2019 to provide for deduction of tax on cash withdrawals made by any person from his bank or post-office account. Who is required to deduct tax? Section 194N requires every banking company, co-operative bank or post office to deduct tax on cash withdrawal made by any person from account(s) maintained with such bank or post office. When tax shall be required to be deducted? TDS under Section 194N tax shall be required to be deducted only when the aggregate amount of cash withdrawal during the previous year by a person from one or more of his bank or post office account, as the case may be, exceeds Rs. 1 crore. Further, the tax shall be required to be deducted only on the amount exceeding Rs. 1 crore. For futher watch out video: To Reach us : asijabrothers09@gmail.com On Twitter @ CA Puneet Asija On FB: https://www.facebook.com/Pasija8

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