(Aditya Shaw, Intern Journalist): The Central Board of Direct Taxes (CBDT) said data on cash withdrawal indicated “huge amount of cash is being withdrawn by persons who have never filed income-tax returns”.
The Income Tax Department has launched a new utility for banks and post offices to help ascertain the applicable Tax Deducted at Source (TDS) for cash withdrawals above Rs 20 lakh for non-filers and above Rs 1 crore for filers of income tax returns.
With this utility, the bank/post office has to now only enter the permanent account number (PAN) of the person who is withdrawing cash for ascertaining the applicable rate of TDS. On entering PAN, a message will be instantly displayed on the departmental utility — “TDS is deductible at the rate of 2 per cent if cash withdrawal exceeds Rs 1 crore” (if the person withdrawing cash is a filer of ITR) and “TDS is deductible at the rate 2 per cent if cash withdrawal exceeds Rs 20 lakh and at the rate of 5 per cent if it exceeds Rs 1 Crore” (in case of non-filers).
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