From September 1, there will be two percent reduction in cash withdrawals from government banks and post offices

1. From September 1, there will be two percent reduction in cash withdrawals from government banks and post offices
    

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The Central Board of Direct Taxes (CBDT) on Friday clarified that two percent tax at source from September 1, on cash withdrawals of more than one crore rupees from one or more bank accounts, government banks or post offices in a year. Will be charged as deduction (TDS).

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The CBDT, in its clarification issued here, said that with a view to promote a 'low cash economy' and discourage cash transactions, this provision has been made in the Income Tax Kanu which is going to take effect from 01 September 2019.

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He said that through social media people are asking what will be the two percent TDS on cash withdrawals till August 31 in the current financial year. In this regard, he said that the provisions made in the Income Tax Act are going into effect from September 1, 2019, so this law will not be effective on the earlier cash withdrawals, but if a person exceeds one crore rupees in the current financial year so far Withdrawal of cash, then further withdrawal will attract TDS of two percent.