Tax deduction on cash withdrawals applies at a fixed rate after separate thresholds for co-operative societies and other recipients. Tax deduction at source applies at 2% on cash withdrawals from one or more accounts maintained with a banking company, co-operative bank or Post Office. ... Summary
Tax deduction on cash withdrawals applies at a fixed rate after separate thresholds for co-operative societies and other recipients.
Tax deduction at source applies at 2% on cash withdrawals from one or more accounts maintained with a banking company, co-operative bank or Post Office. The deduction threshold is Rs.3 crore where the recipient is a co-operative society and Rs.1 crore for other recipients. The mechanism is limited to cash withdrawals, subject to the specified exception for non-deduction at source, and has a distinct threshold and rate structure from the corresponding Income-tax Act provision.
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