The Department of Post has come up with new rules for deduction of tax deducted at source (TDS) in respect of aggregate cash withdrawal above ₹20 lakh by an account holder of National (Small) Savings Schemes, including Public Provident Fund (PPF). In case a recipient has not filed the returns of income for the previous three assessment years, new provisions in section l94N will be applicable from 1 July 2020 for non-ITR filer under section 194N of Income Tax Act 1961.
Department of Post: Here is all you need to know about the new TDS rules
1) For non-ITR filers: If aggregate cash withdrawal exceeds ₹20 lakh but does not exceed ₹1 crore during a financial year, the income tax payable will be 2% of the amount exceeding ₹20 lakh.
2) For non-ITR filers: If cash withdrawal exceeds 1 Crore during a financial year, the income tax payable will be 5% of the amount above ₹1 crore.
3) For ITR filers: If cash withdrawal exceeds ₹1 crore during a financial year. The income tax payable will 2% of the amount above ₹1 crore.
4) These changes are not yet incorporated and to facilitate Post Offices CEPT has identified and extract the details of such depositors for the period from 1 April 2020 to 31 December 2020.
5) CEPT will forward the list to concerned Circle/CBS CPCs of the concerned circles with details of the account, PAN number available along TDS amount to be deducted.
Source: https://www.livemint.com/money/personal-finance/cash-withdrawals-from-ppf-post-office-schemes-income-tax-rules-you-should-know-11615533159762.html
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