Now TDS (Tax Deducted Source ) will be deducted after withdrawing more money than the stipulated amount. Transaction rules range from PPF to various schemes. The rules related to Section 194N of the Income Tax Act 1961 came into force from 1st July last year. In such a situation, today we are going to tell you about the new rules related to withdrawals and deductions from the post office.
- 5 percent reduction in TDS
2% TDS will be deducted for not filing ITR (Income Tax Return) and withdrawing more than 20 lakhs and less than 1 crore in a financial year. If the withdrawal is more than 1 crore, then 5 percent TDS will be deducted.
- Relief in ITR
The government has given relief to the people to file income tax returns. In such a situation, if the withdrawal is more than one crore in a financial year, then 2 percent income tax will have to be paid on the amount of more than that. However, the Center Fall Excellence in Postal Technology has asked to examine transactions for the period from 1 April 2020 to 31 December 2020.
- Departmental action will be
CEPT ( Centre For Environment Planning And Technology ) will send the required information to the concerned circle. Then the details of the account, PAN number and how much TDS will be deducted . The CPC in-charge of the circle will have to send all the information to the concerned post office. So that the TDS of the customers can be deducted. The post office will also have to give information in writing to the account holder after deducting TDS. Whereas vouchers related to TDS amount are required to be signed by the post master, so that it can be sent to HO or SBCO. Now there are many procedures and requirements in the filing of rules. In such a case, the post master will be responsible for the subsequent cuts in the rules.