- TDS is deducted under section 194N for non-return file and cash withdrawal of more than 20 lakh rupees
- SBI explained how they can avoid TDS even after cash withdrawal, to adopt three steps
New Delhi. State Bank of India, the country’s largest bank, keeps issuing instructions, necessary information and alerts to its customers from time to time. At the same time, it also gives information about which work you can do, which will make you easier in the banking process. This time the bank (SBI Bank) has given information to its customers who make cash transactions of Rs 20 lakhs annually. SBI told how they can avoid TDS even after cash withdrawal. For this, SBI customer has to follow only three steps. Let us also tell you what are the ways to avoid TDS from SBI.
TDS is deducted under which rule
In fact, for those who have not filed income tax returns in the last three years and withdraw 20 lakh or more rupees annually, TDS is deducted under section 194N. SBI also gave information about this from its official tweeter handle.
What to do that does not cut TDS
First of all, you have to submit PAN card details in the bank. If already deposited there is no need.
Due to not having a PAN card, tax liability increases.
– At the same time, you have to give details of income tax return.
Interest will be payable from July 1 for non-payment of TDS for three consecutive years
– If you withdraw cash up to 20 lakh rupees annually, then there is no need to pay any interest in case of non-submission of PAN.
In case of withdrawal of cash from Rs 20 lakh to Rs 1 crore, you may have to pay 2% tax if PAN card is submitted and 20% TDS for not depositing PAN details.
– If a person has withdrawn more than Rs 1 crore cash and has submitted PAN card details, then 5% TDS will have to be paid. At the same time, in case of not giving PAN, 20% TDS will have to be paid.
According to SBI, if the customers did not give income tax returns for the last 3 years and withdraw more than Rs 1 crore, then tax will be deducted at the rate of 2%.