te Important alert! TDS on cash withdrawals from post office schemes - What you should know | Zee Business

Important alert! TDS on cash withdrawals from post office schemes - What you should know

The Department of Posts has issued new rules for deduction of TDS if the aggregate withdrawal from all post office schemes is more than Rs 20 lakh. The provision includes withdrawals from PPF also.

Important alert! TDS on cash withdrawals from post office schemes - What you should know
The new rule is applicable from July 1, 2020. Representational image from Pixabay.

The Department of Posts has issued new rules for deduction of TDS if the aggregate withdrawal from all post office schemes is more than Rs 20 lakh. The provision includes withdrawals from PPF also.

As per the new provisions under Section 194N of Income Tax Act 1961, if an investor has not filed income tax returns (ITR) for the previous three assessment years then tax deducted at source (TDS) will be deducted from the withdrawal amount.

The new rule is applicable from July 1, 2020.

TRENDING NOW

As per the provisions, if aggregate cash withdrawal by an investor exceeds Rs 20 lakh but does not exceed Rs 1 crore during a financial year and he is a non-ITR filer, then TDS at the rate of 2 per cent will be deducted from the amount exceeding Rs 20 lakh.

In case total cash withdrawal from all post office accounts exceeds Rs 1 crore in one financial year then TDS at 5 per cent will be payable on the amount exceeding Rs 1 crore.

If you are an ITR filer and cash withdrawal exceeds Rs 1 crore by an ITR filer in a financial year the income tax payable will 2 per cent of the amount above Rs 1 crore.

The changes have not yet been incorporated.

In order to facilitate Post Offices to deduct TDS, the Center for Excellence in Postal Technology (CEPT), the technology solution provider to post offices, has identified and extracted the details of such depositors for the period from April 1, 2020, to December 31, 2020.

CEPT will provide the required details to the concerned circles. Details such as account, PAN number of the depositor and the TDS amount to be deducted will be provided by the CEPT.

The respective Post Office of the depositor will deduct TDS and the account holder will be informed about the deduction.

Written By: IANS
Updated: Tue, Mar 30, 2021
07:43 pm
IANS
RELATED NEWS
Post Office Savings Schemes: Can your account be frozen for not linking it with Aadhaar card Post Office Savings Schemes: Can your account be frozen for not linking it with Aadhaar card
Union Minister Ashwini Vaishnaw inaugurates India's first 3D-printed post office in Bengaluru Union Minister Ashwini Vaishnaw inaugurates India's first 3D-printed post office in Bengaluru
Sukanya Samriddhi Yojana (SSY): Income tax benefits for parents, interest rate 2023, age limit Sukanya Samriddhi Yojana (SSY): Income tax benefits for parents, interest rate 2023, age limit
Post office national flag: Buy Tricolour online through e-portal service for Rs 25 - Steps explained Post office national flag: Buy Tricolour online through e-portal service for Rs 25 - Steps explained
Beware! Fraud alert - India Post Office is not running any lucky draw | Here is what you should know Beware! Fraud alert - India Post Office is not running any lucky draw | Here is what you should know

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x