Calcutta highcourt stays TDS collection under section 194N Income Tax Act till sep 30

The calcutta highcourt on thursday passed an interim order restraining the Income tax Department from collecting Tax Deduction at sources (TDS) under section 194N of the income tax Act, 1961 .

Justice Md. nizamuddin was adjudicating upon a plea challenging the constitutional validity of the provision which was inserted by the finance Act, 2019 and became effective from 1 sep 2019,.the provision mandates the deduction of tax at sources at the rate of 2 percent on cash withdrawls from, inter alia, a banking company exceedings Rs 1 crore In a financial year.

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