State Bank of India, Old Market Branch, Dimapur. (File Photo)
Dimapur, June 18 (MExN): The State Bank of India (SBI), Dimapur Branch today informed on tax deduction on cash withdrawals under Section 194n Of Income Tax Act, 1961.
A press release issued by Besü Bosco, Assistant General Manager, SBI, Dimapur Branch stated that as per recent amendment of Income Tax Act, 1961 under Section 194N which will come into effect from July 1 and applicable to customers of all Banks:
• All customers (personal and non-personal) who in a given financial year withdraw cash exceeding Rs 20 lakh and up to Rs 1 Crore and have not filed income-tax returns for all three previous years for which the due date to file ITR (Income Tax Return) has expired, tax will be deducted @ 2% on amount exceeding Rs 20 lakh.
• All customers (personal & non-personal) who in a given financial year withdraw cash more than Rs 1 Crore, and have not filed income-tax returns for all three previous Years for which the due date to file ITR (Income Tax Return) has expired, tax will be deducted @ 5% on amount exceeding Rs. 1 Crore.
• However, customers who have filed Income Tax Return in any one of last 3 years and who in a given financial year withdraw cash more than Rs 1 Crore, Tax will continue to be deducted @ 2% on amount exceeding Rs. 1 Crore.
“Customers are advised to register internet banking and transact online to avoid the above tax on cash withdrawals,” the AGM added.
For more details visit Income Tax site: https://www.incometaxindia.gov.in
