TDS ON CASH WITHDRAWAL
Every person, being :
(i) a banking company
(ii) a co-operative society engaged in carrying on the business of banking; or
(iii) a post office,
who is responsible for paying any sum, being the amount or the aggregate of amounts, as the case may be, in cash exceeding one crore rupees during the previous year, to any person (herein referred to as the recipient) from one or more accounts maintained by the recipient with it shall, at the time of payment of such sum, deduct an amount equal to 2% of such sum, as income-tax.
Provided that in case of a recipient who has not filed the returns of income for all of the three assessment years relevant to the three previous years, for which the time limit to file return of income under section 139(1) has expired, immediately preceding the previous year in which the payment of the sum is made to him, the provision of this section shall apply with the modification that—
(i) the sum shall be the amount or the aggregate of amounts, as the case may be, in cash exceeding ₹20,00,000 during the previous year; and
(ii) the deduction shall be—
(a) an amount equal to 2% of the sum where the amount or aggregate of amounts, as the case may be, being paid in cash exceeds ₹ 20,00,000 during the previous year but does not exceed one crore rupees; or
(b) an amount equal to 5% of the sum where the amount or aggregate of amounts, as the case may be, being paid in cash exceeds one crore rupees during the previous year
This section shall not apply to any payment made to—
(i) the Government;
(ii) any banking company or co-operative society engaged in carrying on the business of banking or a post office;
(iii) any business correspondent of a banking company or co-operative bank
(iv) any white label automated teller machine operator of a banking company or co-operative bank
Source "INCOMETAXINDIA"
last modified date 27/07/2020.
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