Avoid high TDS rates by transacting online, filing ITR regularly
Avoid high TDS rates by transacting online, filing ITR regularly https://www.fundstiger.com/avoid-high-tds-rates-transacting-online-filing-itr/ In order to tighten the noose on those who don’t file income tax returns (ITR) despite earning taxable income and discourage cash transactions, the Finance Act 2020 introduced higher TDS (tax deducted at source) rates on cash withdrawals for those who do not file ITR. The rule came into effect in July but the withdrawal limits for FY20 will be calculated from April. Those who haven’t filed ITR for the past three financial years (FYs) will have to pay TDS at the rate of 2%, if the amount withdrawn from the bank is above ₹20 lakh but doesn’t exceed ₹1 crore in an FY. If the amount exceeds ₹1 crore, TDS will be deducted at the rate of 5% under Section 194N of the Income-tax Act, 1961, for those who do not file ITR. However, even if you have filed your ITR but withdraw cash above ₹1 crore in an FY, you will still have to pay TDS but at a lo...