While presenting the Union Budget for 2018-19, it was announced that Section 194N would be introduced into the Income Tax Act, 1961 in order to discourage cash transactions and move towards cash less economy. The said Section provides for levy of tax @ 2% on cash payments in excess of 1 crore Rupees in aggregate made during the year, by a banking company or cooperative bank or post office, to any person from one or more accounts maintained with it by the recipient. In this regard, CBDT has now issued a press release dated 30 August 2019 clarifying as below:
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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