Govt to levy 2% TDS on cash withdrawal over Rs 1 cr from multiple accounts

The total TDS paid on cash withdrawal beyond Rs 1 crore will be adjusted against the total tax dues from the taxpayer.

The government will charge a two per cent tax if aggregate cash withdrawal from one or more accounts exceeds Rs 1 crore, according to an amendment made to a Budget proposal and announced Thursday. 

Finance Minister Nirmala Sitharaman, in her Budget on July 5, had proposed 2 per cent tax deduction at source (TDS) on Rs 1 crore cash withdrawal from "an account" to discourage high-value withdrawals.

As people holding multiple accounts could have misused the proposal, the government amended the Finance Bill, 2019, to state that TDS will be charged if aggregate withdrawal from "one or more accounts" of a person