• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Govt exempts cash payments above Rs 1 crore via AMPC from 2 per cent TDS

By PTI
|

New Delhi, Sep 16: In a relief to the farm sector, the government has decided not to levy 2 per cent tax deduction at source (TDS) on cash payments of over Rs 1 crore made through Agriculture Produce Market Committees (APMCs).

The government had made the provision of levying 2 per cent TDS on cash withdrawals exceeding Rs 1 crore in the Union Budget with an aim to discourage cash transactions and move towards a less-cash economy.

Representational Image

The provision is set to come into force from October 1.

"Addressing the concerns raised by Agriculture Produce Market Committees (APMCs), it has been decided not to levy the 2% TDS on cash payments above Rs 1 crore made through APMCs, in order to make immediate payments to farmers for their produce," Finance Minister Nirmala Sitharaman said in a tweet.

Meanwhile, in another tweet, the minister said an additional 15 per cent depreciation will be allowed on motor vehicles purchased between August 23, 2019, and March 31, 2020.

TDS exemption: Govt may keep some sectors out to 2% deduction rule

She had made this announcement on August 23 as part of measures to boost the economy.

"The move is expected to give a boost to the automobile sector by driving sales," she added.

The depreciation on cars purchased during the period will be 30 per cent as against the normal rate of 15 per cent.

While in the case of buses, lorries and taxis, the depreciation rate has been enhanced to 45 per cent from 30 per cent. Depreciation helps companies reduce tax liabilities.

Farm expert Vijay Sardana commented that the exemption to APMCs will benefit traders but not farmers.

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more