The Post Office has laid down new rules for TDS, which is deductible on withdrawals of more than Rs. 20 lakhs from all post office schemes. This includes the amount taken from the PPF. Under Section 194N of the Income Tax Act 1961, if an investor does not file an income tax return (ITR) for the previous three assessment years, the tax deducted at source (TDS) will be deducted from the amount he withdraws.
Post Office, PPF TDS Rules
According to the rules, if an investor takes more than Rs 20 lakh and above Rs 1 crore in a particular financial year and does not file an income tax return, TDS will be deducted at 2 per cent of the amount above Rs 20 lakh. According to the IANS report, the new rule will apply from July 1.
If the total amount withdrawn from all Post Office accounts exceeds Rs. 1 crore in a financial year, in that case, more than Rs.
Since you are a regular income tax filer, if the total amount you take is more than Rs 1 crore in a financial year, you will have to pay 2 per cent income tax on the amount above Rs 1 crore. These changes have not yet been incorporated into the process.
To facilitate post offices to deduct TDS, CEPT, the technical solution provider for post offices, has identified and separated the details of such depositors for the period from 1 April to 31 December 2020.
CEPTwill provide the required details to the relevant circles. Details such as account, depositor's PAN and deductible TDS amount will be provided by CEPT. The TDS will be deducted from the respective post office of the depositor. This will then be communicated to the account holder.
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