Rules Change: Nowadays every person deposits his money in the bank so that it remains safe and interest can also be earned on it. Whenever someone needs money, they usually withdraw cash from ATM or bank. But there are some rules and limits for cash withdrawal, which are important to know. Let us know about these rules and limits in detail.
Limit on cash withdrawal from ATM
Rules Change: Every bank has set a fixed limit for withdrawing cash from ATM. This limit depends on the type of ATM card and the bank’s policy. For example, a maximum of Rs 40,000 can be withdrawn from a bank’s ATM in a day, while in some other banks this limit can be up to Rs 50,000.
If you need more cash than this limit, you have to wait till the next day. The limit for withdrawing large amounts from ATM is only on a daily basis, so it is important to know how much you can withdraw at one time.
Rules for withdrawing cash from the bank
If you need more cash than the ATM limit, you can withdraw cash directly from the bank. There are some rules that need to be followed for withdrawing cash from the bank. The rules are a little strict, especially for withdrawing large amounts.
TDS on cash withdrawal of more than Rs 20 lakh
If you withdraw more than Rs 20 lakh in cash in a financial year and you have not filed Income Tax Return (ITR) for the last three years, then you will have to pay TDS (Tax Deducted at Source) . In this case, you will have to pay TDS at the rate of 2%.
If you withdraw an amount of Rs 1 crore or more in cash, the rate of TDS will be 5%. That is, if you withdraw such a large amount, you will have to pay 5% of the total amount as TDS. This rule applies to those who have not filed ITR. If you have filed ITR on time, you will not have to pay TDS on cash withdrawal, no matter how big the amount you withdraw. This exemption is for those who regularly give details of their income to the government and file ITR.
Cash withdrawal limit in banks
The limit of cash withdrawal from the bank also depends on the policies of the bank. In some banks, you can withdraw a maximum of Rs 1 lakh in cash in a day, while in some banks this limit is up to Rs 5 lakh. This limit may vary depending on the services of the bank and the customer’s profile.
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