SAVINGS BANK - INCOME TAX TDS

With effect from 1.9.2019, if withdrawals from all Savings Accounts put together  exceeds Rs.1 crore in a financial year, TDS @ 2% is to be recovered from the depositor on the amount exceeding Rs.1 crore.   Vide SB Order No. 2/2020,  necessary instructions have been issued in this regard.  However, no TDS is to be recovered if the payment is made to 

(i) the Government;

(ii) any banking company or co-operative society engaged in carrying on the business of banking or a post office.

(iiil any business correspondent of banking company or co-operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India Act, 1984 ( 2 of 1934);

(iv) any white label automated teller machine operator of a banking company or co- operative society engaged in carrying on the business of banking, in accordance with the authorization issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 (51 of 2007)

(v) such other person or class of persons , which the central Government may, by notification in the official Gazette, specify in consultation with the Reserve Bank of India.

Click here for the relevant SB Order No. 2/2020