Cash withdrawal tax deduction requires specified institutions to withhold tax after applicable aggregate withdrawal thresholds are exceeded.

Tax deduction at source on cash withdrawals applies where cash is withdrawn from one or more accounts maintained with a banking company, co-operative bank or Post Office. The relevant institution must deduct tax at 2% once aggregate withdrawals exceed the prescribed threshold. A higher threshold applies to a recipient that is a co-operative society, while a lower threshold applies to other recipients. The rule is limited to cash withdrawals and is subject to a separately specified exception from deduction.

---

---

---