Bank Transaction New Rules: Rules also apply to the money that is maintained in your bank account. Knowing how much money can be taken out without causing tax problems is therefore crucial.
Bank Transaction New Rules: Wait a little while if you are certain that you will be able to withdraw the funds from your bank account at any time. Once more, you will need to carefully schedule your withdrawal to save money on needless taxes. You should be aware of the annual withdrawal limit in order to avoid paying taxes on this. Not only does the fee-for-withdrawing policy apply to ATM transactions when the amount taken out exceeds the limit, but it also applies to bank withdrawals.
Bank Transaction New Rules, How much money can be taken out?
People mistakenly believe that they can take out as much money as they like for free from their bank account. However, if an individual withdraws more than Rs 20 lakh in a financial year, they are required to pay TDS under section 194N of the Income Tax Act. This regulation, however, only applies to those who have not submitted an income tax return (ITR) for three years in a row. If such individuals take out more than Rs 20 lakh from a bank, cooperative, or post office, they will be required to pay TDS.
Bank Transaction New Rules, Relief for individuals who submit income tax returns
On the other hand, this rule provides more relief to individuals who file ITRs. These clients are exempt from paying TDS when they withdraw up to Rs 1 crore in cash from their bank, post office, or cooperative bank account within a fiscal year.
