2% Tax on over 1 crore cash withdrawal
Does anyone know if this tax applies on business accounts also or just individual accounts.
Business needs may be different than individuals esp transport businesses etc more
Loan commission is standard 2% from any bank of NBFC we don't cry then, why question govt now.. when the poor govt needs money..
If you don't want to withdraw from bank, keep money distributed with politicians.. you can save 2% as well get more business.. ha Haa.
The new mantra of Indian business..
Paytm, Reliance and Adani all are doing good business in India.. more
As per section 194N of IT act, it is applicable to withdrawals made by any taxpayer including:
A Hindu Undivided Family (HUF)
A partnership firm or an LLP
A local authority
An Association of Person (AOPs) or Body of Individuals (BOIs) more
Please note even though the TDS is effective from 1st September 2019, the banks have been advised to add withdrawals from 1st April 2019 on wards to determine the TDS liability. more
Personally I feel that this 2% TDS on aggregate cash withdrawal of more than one crore in a year, is basically a double taxation of the same amount - once upon compulsory deposit of the cash in the banks or post office as charging of the services besides counting the same as income for tax purposes, TDS amount to double taxation which is illegally. Basically, TDS should not be there at all. I may mention that I am not a taxation expert and my observations are just as one of a common man. more
You are true.. but as written in constitution citizens can not be taxed more than their 100% income..
Government is going in the right direction..
At least they are not charging 100% yet.. more
I think it applies for businesses as well. But it is a TDS, not tax. Bank will deduct tax and it will show up as credit in your income tax account, which can be adjusted against any income tax liabilities. This is similar to TDS for contractors, salary payments, and host of similar TDS conditions. more