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• TDS will be charged only on the amount withdrawn above INR 1Cr.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• If you have already withdrawn above INR 1 Cr before 1st Sept, then TDS will be charged on any subsequent cash withdrawal

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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.

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