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2% TDS on cash withdrawal exceeding Rs 1 crore in a year

The Government on Friday proposed to levy TDS of 2 percentĀ on cash withdrawal exceeding Rs 1 crore in a year from a bank account. Presenting the Budget 2019-20, Finance MinisterĀ said alternatives such as BHIM, UPI, digital payment modes, NEFT and RTGS could be used to promote a cashless economy.”Business establishments with an annual turnover of Rs 50 crore would have to provide digital payment modes to customers at no extra charges or merchant discounts, on either customers or merchants,” she added.She said the Reserve Bank of India (RBI) and the government will cover the costs from savings accrued via a decrease in cash transaction operations.

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