Cash withdrawals that exceed a total of ₹1 crore in a year will attract TDS at 2% of the amount withdrawn. This is applicable to withdrawals from banks, post offices or co-operative societies engaged in business of banking. This is as per the newly inserted Section 194N in the Income Tax Act.
2) TDS on payments made by individuals and HUFs to contractors and professionals
Payments made to a contractor or a professional or payments of commission or brokerage that exceed ₹50,00,000 in a financial year will be subject to TDS. The TDS applicable is 5% of the amount paid. This is applicable to individuals and HUFs (Hindu Undivided Family) that do not get their accounts audited. For example, this clause will be applicable for payments made for home renovation or event management.
3) TDS on life insurance
If the payout of life insurance maturity amount is taxable, TDS @ 5% of the net amount received will be applicable from now. Earlier TDS was 1% of the gross amount received under the policy
Net amount = Gross amount received - Total amount of insurance premium paid
4) TDS on additional payments made when purchasing immovable property
TDS is deducted @ 1% of the total amount when a person purchases an immovable property of the value of ₹50,00,000 or more. Other charges such as club membership fee, car parking fee, electricity and water facility fees, maintenance fee and other similar payments that are incidental to the transfer of immovable property were not included in this sum. Now all these additional charges are included for calculation of TDS amount. This is not applicable to agricultural land.
5) Interchangeability of PAN and Aadhaar
It has been proposed that PAN and Aadhaar are interchangeable from 1 September 2019 for transactions. People who do not have PAN can quote Aadhaar in their transactions that require PAN number details.