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The federal government has raised the advance tax rate on cash withdrawals for non-filers. Previously set at 0.6 per cent under Section 231AB for cash withdrawals exceeding Rs. 50,000 per day, the rate has now been increased to 1 per cent, as proposed in the recent budget.
For instance, if a non-filer withdraws Rs. 50000, Rs. 500 will be deducted instead of the Rs. 300 that was previously deducted. This tax is in addition to the ATM withdrawal fee. It also applies to cash withdrawals made using credit cards or from automated teller machines (ATMs).
