Important Points:
1. The budget 2020 has reduced the threshold limit for TDS to Rs 20 lakh for taxpayers who have not filed their income tax returns for past three years. Such taxpayers withdrawing cash in excess of Rs 20 lakh have to pay 2% as TDS.
2. Earlier, the Union Budget 2019 has introduced Section 194N for deduction of tax at source (TDS) on cash withdrawals exceeding Rs 1 crore to discourage cash payments.
3. Effective date of Amendment: Amendment of Section 194N will be with effect from 01 July 2020.
4. As per the press release dated 13.05.2020 issued with respect to “Reduction of TDS rates by 25%” in that list 194N is not covered so the same TDS rates of 2% or 5% will be applicable.
Read on me: https://taxguru.in/income-tax/section-194n-tds-cash-withdrawal-after-press-release-dated-13-05-2020.html
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