Budget 2019-20: TDS on cash withdrawal, Blue Economy and other Highlights

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Budget 2019-20: TDS on cash withdrawal, Blue Economy and other Highlights

It is also proposed that business establishments with annual turnover of over Rs 50 crore shall offer low cost digital modes of payment

Friday July 5, 2019 5:12 PM, ummid.com News Network

New Delhi: In a bid to promote digital payments and curb black money, Union Finance Minister Nirmala Sitharaman on Friday proposed tax deduction at source (TDS) of two per cent on cash withdrawals exceeding Rs 1 crore in a year from a bank account.

"Our Government has taken a number of initiatives in the recent past for the promotion of digital payments and less cash economy," Sitharaman said while presenting her first Union Budget.

The Finance Minister also proposed that business establishments with an annual turnover of more than Rs 50 crore shall offer low cost digital modes of payment to their customers and no charges or Merchant Discount Rate (MDR) shall be imposed on customers as well as merchants.

"RBI and banks will absorb these costs from the savings that will accrue to them on account of handling less cash as people move to these digital modes of payment," Sitharaman said.

"Necessary amendments are being made in the Income Tax Act and the Payments and Settlement Systems Act, 2007 to give effect to these provisions," she added.

Key Budget 2019-20 Highlights

Building Team India with Jan Bhagidari: Minimum Government Maximum Governance.

Achieving green Mother Earth and Blue Skies through a pollution-free India.

Making Digital India reach every sector of the economy.

Launching Gaganyan, Chandrayan, other Space and Satellite programmes.

Building physical and social infrastructure.

Water, water management, clean rivers.

Blue Economy.

Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables.

Achieving a healthy society via Ayushman Bharat, well-nourished women & children, safety of citizens.

Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices under Make in India.