Bank Transaction: Tax will have to be paid on withdrawing cash from bank account beyond this limit, know the rules of income tax.

Bank Transaction: Your cash stored in the bank account additionally comes below the purview of the rules. Therefore, it is rather necessary to know how a lot cash can be simply withdrawn with out getting concerned in tax. Let us know about it intimately.

– Advertisement –

If you might be assured of withdrawing the cash mendacity in your bank account anytime. So wait a bit. You will have to plan your withdrawal of cash fastidiously once more so that you simply keep away from paying pointless taxes. For this you need to know how a lot quantity can be withdrawn in a 12 months with out paying tax. The rule of paying charges for withdrawing cash greater than the prescribed restrict shouldn’t be solely relevant to ATM transactions, however an analogous rule can also be relevant for withdrawing cash from the bank.

How a lot cash can be withdrawn

People really feel that they’ll withdraw as a lot cash as they need from their bank account without spending a dime. But, below Section 194N of the Income Tax Act, if an individual withdraws greater than Rs 20 lakh in a monetary 12 months, he will have to pay TDS. However, this rule is just for these individuals who have not filed Income Tax Return (ITR) for 3 consecutive years. Such folks will have to pay TDS in the event that they withdraw greater than Rs 20 lakh from any bank, cooperative or publish workplace.

Relief to these submitting income tax returns

However, these submitting ITR get extra aid below this rule. Such prospects can withdraw cash up to Rs 1 crore in a monetary 12 months from the bank, publish workplace or co-operative bank account with out paying TDS.

How a lot TDS will have to be paid?

Under this rule, when you withdraw greater than Rs 1 crore from your bank account, TDS will be deducted at the price of 2 p.c. If you have not filed ITR constantly for the final three years, then you definitely will have to pay 2 p.c TDS on cash withdrawal of greater than Rs 20 lakh and 5 p.c TDS on withdrawal of greater than Rs 1 crore.

There is already a cost on ATM transactions

Banks cost a charge for withdrawing cash from ATM greater than the prescribed restrict. RBI had elevated the service cost for withdrawing cash from ATM from January 1, 2022. Now banks are charging Rs 21 for transactions exceeding the prescribed restrict. Earlier one had to pay Rs 20 for this. Most banks supply 5 free transactions each month from their ATMs. Apart from this, three transactions are additionally free from ATMs of different banks. However, in metro cities, you’ll be able to withdraw cash solely thrice without spending a dime from your personal bank.

Bank Personal mortgage : Cheapest private mortgage obtainable in these 10 banks, test rate of interest and expenses

– Advertisement –