Discouraging Cash Payments: 2 Per Cent TDS On Cash Withdrawal Exceeding Rs 1 Crore Per Year

Discouraging Cash Payments: 2 Per Cent TDS On Cash Withdrawal Exceeding Rs 1 Crore Per YearRepresentative image of stacks of cash (SAM PANTHAKY/AFP/Getty Images)

To discourage cash payments, Finance Minister Nirmala Sitharaman has proposed a 2 per cent TDS for cash withdrawal exceeding Rs 1 crore from a particular bank account in one year.

Similarly, to promote digital payments, businesses with turnover of over Rs 50 crore would offer low-cost digital payments for customers. No chargers or merchant discount rates would be imposed on either customers or merchants.

Income Tax filers have also been provided a relief in the returns filing process via pre-filled return forms and PAN-Aadhaar interchangeability. The latter means that in case taxpayers are unable to furnish their PAN details, they can also file returns using their Aadhaar number.