If correct PAN is given, tax will be deducted at 10% on interest paid / payable of term deposit , recurring deposit exceeding Rs. 40,000 / Rs. 50,000 for non-senior / senior citizens respectively.
If incorrect PAN / no PAN is given, tax will be deducted at 20% on interest paid / payable of term deposit, recurring deposit exceeding Rs. 40,000 / Rs. 50,000 for non-senior / senior citizens respectively.
TDS ON CASH WITHDRAWALS EXCEEDING ₹ 1 CRORE
As per the Income-tax regulations, tax will be deducted @ 2% from the aggregate cash withdrawals exceeding ₹1 crore during a financial year, from one or more accounts, maintained by a customer.
For the financial year 2019-20, cash withdrawals from 1-Apr-2019 would be considered for calculating threshold of ₹1 crore. However, TDS will be deducted only on cash withdrawals on or after 1-Sept-2019.
List of persons and entities who are exempt from TDS on cash withdrawal:
the Government;
any banking company or co-operative society engaged in carrying on the business of banking or a post office;
any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking;
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.
