Filers exempted from Advance Tax on cash withdrawals and online transactions above Rs.50,000

March 13, 2019 (MLN):  As per announcement made in National Assembly on March 11, 2019, withholding tax on cash withdrawal for filers has been abolished with effect from today, March 13, 2019.

All  banks are obliged for withholding tax on Cash Withdrawal through single or multiple transactions on all accounts, given that the payment for cash withdrawal, or the sum total of the payments (including withdrawal from ATM in a day) for cash withdrawal in a day from all bank accounts of a ‘Non-filer” customer exceeds Rs.50,000. This tax shall be charged at the existing rates of 0.6%.

Regarding advance tax on transactions in Bank, 0.6% withholding tax shall be charged for ‘non-filers’ on sale against cash of any banking instrument including demand draft , pay order, CDR, STDR, SDR, RTC, or any other instrument of bearer nature.

In addition to this, withholding tax on the same rate shall be charged for ‘non-filers’ on transfer of cash through any mode of electronic transfer.

However, there shall be no withholding tax on customers having ‘filer’ status.

Copyright Mettis Link News

Posted on: 2019-03-13T17:58:00+05:00

26692