Income Tax Return (ITR) Filing: MUST know top 5 rules for cash withdrawals from PPF, post office schemes

Income Tax Return (ITR) Filing: The Department of Post has introduced a new income tax rules for tax deducted at source (TDS) deduction in respect of aggregate cash withdrawal above Rs 20 lakh by an account holder of National (Small) Savings Schemes, including Public Provident Fund (PPF).

New income tax provisions in Section 194N of the Income Tax Act will be applicable from 1st July 2020 for non-ITR filer under section 194N of Income Tax Act 1961 if a recipient has not filed the returns of income for the previous three assessment years.

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Here are the top 5 income tax rules that an earning individual must know irrespective of the fact that they are filing ITR or not:

1] For non-ITR filers: If aggregate cash withdrawal exceeds Rs 20 lakh but does not exceed Rs 1 crore during a financial year, the income tax payable will be 2 per cent of the amount exceeding Rs 20 lakh.

2] For non-ITR filers: If cash withdrawal exceeds 1 crore during a financial year, the income tax payable will be 5 per cent of the amount above Rs 1 crore.

3] For ITR filers: If cash withdrawal exceeds Rs 1 crore during a financial year. The income tax payable will 2 per cent of the amount above Rs 1 crore.

4] These changes in the income tax rules are not yet incorporated and to facilitate Post Offices CEPT has identified and extract the details of such depositors for the period from 1st April 2020 to 31st December 2020.

5] CEPT will forward the list to concerned Circle/CBS CPCs of the concerned circles with details of the account, PAN number available along TDS amount to be deducted.