TIL Desk/Business/New Delhi/ Plugging loopholes, the government on Thursday brought an amendment to its Budget proposal to levy tax on high value cash withdrawals, saying a two per cent tax will be charged if aggregate cash withdrawal from one or more accounts exceeds Rs 1 crore.
In the Budget presented on July 5, Finance Minister Nirmala Sitharaman had provided for 2 per cent tax deduction at source (TDS) on Rs 1 crore cash withdrawal from “an account” to discourage high value cash withdrawal.
Fearing this provision could be misused by persons holding multiple accounts, she brought an amendment to the Finance Bill, 2019, to state that TDS will be charged if aggregate withdrawal from “one or more accounts” of a person exceeds Rs 1 crore. The amendment, along with 28 others, were approved by a voice vote by the Lok Sabha, which passed the Finance Bill 2019.
