CBDT Provides Utility For TDS Rates on Cash Withdrawals

CBDT Offers Utility For TDS Charges on Money Withdrawals

New Delhi: The Earnings Tax Division has facilitated a brand new performance for banks and publish places of work to establish TDS applicability charges on money withdrawal of above Rs 20 lakh in case of a non-filer of the income-tax return and that of above Rs 1 crore in case of a filer of the income-tax return.

In a press release, the Central Board of Direct Taxes (CBDT) mentioned that now banks and publish places of work need to solely enter the PAN of the one that is withdrawing money for ascertaining the relevant charge of TDS.

To date, greater than 53,000 verification requests have been executed efficiently on this facility, a press release by the CBDT mentioned.

“CBDT in the present day mentioned that this performance obtainable as ‘Verification of applicability u/s 194N’ on https://ift.tt/1dxxFKf since 1st July 2020, can also be made obtainable to the Banks by means of web-services in order that your complete course of could be automated and be linked to the Financial institution’s inside core banking answer,” it mentioned.

On coming into PAN by the financial institution or the publish workplace, a message will probably be immediately displayed on the departmental utility: “TDS is deductible on the charge of two per cent if money withdrawal exceeds Rs 1 crore”, in case the individual withdrawing money is a filer of the income-tax return.

In case the individual withdrawing money is a non-filer of earnings tax return, the message proven could be: “TDS is deductible on the charge of two per cent if money withdrawal exceeds Rs 20 lakh and on the charge of 5 per cent if it exceeds Rs 1 crore.”

The CBDT mentioned that the info on money withdrawal indicated that massive amount of money is withdrawn by the individuals who've by no means filed income-tax returns.

To make sure submitting of return by these individuals and to maintain observe on money withdrawals by the non-filers, and to curb black cash, the Finance Act, 2020 with impact from July 1, 2020 additional amended IT Act to decrease threshold of money withdrawal to Rs 20 lakh for the applicability of this TDS for the non-filers and in addition mandated TDS on the increased charge of 5 per cent on money withdrawal exceeding Rs 1 crore by the non-filers.