Income tax department launches tool to calculate TDS rate on cash withdrawals under new tax rules
PrintListen to this Article
However, this tool has been made available only for official use by banks, co-operative societies, and post offices. The tool is available on the IT department’s e-filing portal. Financial institutions can click on ‘Verification of applicability u/s 194N’ under the ‘Quick Links’ menu on the department’s e-filing portal to access the tool and calculate TDS for a recipient.
To verify the applicability of the TDS rate, one can go to the link and give his or her PAN (Permanent Account Number) and mobile number where an OTP will be shared. Banks and other financial institutions can use the facility to calculate the TDS rate applicable in your case.
Alternatively, you may be asked to sign a declaration letter along with a copy of the acknowledgment of return of Income (ITR-V) of FY 2018-19, FY 2017-18, and FY 2016-17 for verification purposes, as reported by LiveMint.
Section 194N had been introduced in the Income Tax Act in July '19 by the government to discourage cash transactions and promote the digital economy by making TDS at the rate of 2 per cent applicable on cash withdrawals over and above Rs 1 crore.
With effect from July 1 this year, the rules have been amended and lowered the threshold of Rs 1 crore to Rs 20 lakh. It has further tied TDS on cash withdrawals to IT returns. TDS will be applicable for cash withdrawals of Rs 20 lakh and above for those who have not filed their income tax returns (ITRs) for the past three years.
For those who have filed their returns regularly, TDS of 2 per cent will be applicable for cash withdrawals of above Rs 1 crore. #casansaar (Source - Times of India, TNN)
Category : Income Tax | Comments : 0 | Hits : 852
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
As many as 5,44,205 appeals were pending resolution with the Income Tax (IT) Department at commissioner (appeals) level as of January 31 this year, and 63,246 at various Income Tax Appellate Tribunals (ITATs), High Courts, and the Supreme Court, FE has learnt. To be precise, the cases pending in ITATs were 20,266 High Courts, 37,436; and Supreme Court 5,544. The large pendency is even as the Central Board of Direct Taxes (CBDT) has laid emphasis on disposing of income tax appeals in its 10...
The Central Board of Direct Taxes (CBDT) has facilitated taxpayers to file their Income Tax Returns (ITRs) for the Assessment Year 2024-25 (relevant to Financial Year 2023-24) from 1st April, 2024 onwards. The ITR functionalities i.e. ITR-1, ITR-2 and ITR-4, commonly used by taxpayers are available on the e-filing portal from 1st April, 2024 onwards for taxpayers to file their Returns. Companies will also be able to file their ITRs through ITR-6 from April 1 onwards. As ...
It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that the new regime under section 115BAC(1A) was introduced in the Finance Act 2023 which was as under as compared to the existing old regime (without exemptions): New Regime 115BAC (1A) introduced for FY 2023-24 Existing old Regime 0-3 lacs 0% 0-2.5 lacs 0% ...
Comments