Govt Increases Advance Tax on Cash Withdrawals for Non-Filers

The federal government has increased the rate of deduction of advance tax on cash withdrawals by non-filers.

Previously, the rate of deduction of advance tax on cash withdrawals exceeding Rs. 50,000 per day by non-filers was 0.6 percent under section 231AB. It has now been proposed that the rate be increased to 1 percent.

Last year, over Rs. 50,000 in cash withdrawals by non-filers, in a single day, through credit cards/ATMs were also subject to a 0.6 percent tax. Cash withdrawals made on credit cards or from ATMs were also covered under this provision.