Cash withdrawal withholding applies at a fixed rate, with a higher threshold for co-operative society recipients. Cash withdrawal withholding under Section 393(3), Table, Sl. No. 5 requires a banking company, co-operative bank or Post Office to deduct tax on cash ... Summary
Cash withdrawal withholding applies at a fixed rate, with a higher threshold for co-operative society recipients.
Cash withdrawal withholding under Section 393(3), Table, Sl. No. 5 requires a banking company, co-operative bank or Post Office to deduct tax on cash withdrawals from accounts maintained with it. Tax is deducted at a fixed rate of 2% after aggregate withdrawals exceed the prescribed threshold. A higher threshold applies to co-operative society recipients than to other recipients. The mechanism is limited to cash withdrawals, subject to a no-deduction exception identified under Section 393(4), Table, Sl. No. 18.
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