Banks, post offices can now find out TDS on large cash withdrawals

Banks and post offices can now ascertain the tax deducted at source (TDS) of those withdrawing large cash just by entering permanent account number of these assesses on the facility provided by the income tax department.

The department has facilitated a new functionality for banks and post offices through which they can ascertain the TDS applicability rates.

So far, more than 53,000 verification requests have been executed successfully on this facility.

TDS is deductible at the rate of two per cent  if cash withdrawal exceeds Rs 1 crore by a person who is filer of income tax returns.

However, if a person is non-filer of ITR,  TDS is deductible at the rate two per cent if  cash withdrawal is Rs 20 lakh and at the rate of 5 per cent if it exceeds Rs one crore.