CURRENT AFFAIRS

Detailed explanation-1: -TDS will be deducted at 2% on cash withdrawals of more than ₹ 20 lakh and 5% for withdrawals exceeding ₹ 1 crore if the person withdrawing the cash has not filed ITR for any of the preceding three AYs.

Detailed explanation-2: -The TDS would be deducted by a Bank, Co-operative Bank or Post Office 2% or 5% ( as the case may be) on a sum of cash withdrawal being the amount or the aggregate of amounts exceeding Rs 20 Lakhs or 1 crore ( as the case may be) during a previous year.

Detailed explanation-3: -The payer will have to deduct TDS at the rate of 2% on the cash payments/withdrawals of more than Rs 1 crore in a financial year under Section 194N. Thus, in the above example, TDS would be on Rs 50,000 at 2%, i.e. Rs 1,000.

Detailed explanation-4: -With effect from Sep 01, 2019, TDS of 2% would be levied on cash withdrawals exceeding Rs. 1 crore as per Section 194N of the Income Tax Act 1961 (’Act’) introduced in the Union Budget 2019.

Detailed explanation-5: -If you have not filed income tax returns for all or any year out of the three previous years, you will get this message: “TDS is deductable at the rate of 2% if cash withdrawal exceeds Rs. 20 lakh and 5% if it exceeds Rs.