If you are a customer of SBI, read this! Otherwise a hefty tax will be deducted from the account

If you are a customer of State Bank of India (SBI) and withdraw cash of Rs 20 lakh from your account in a year, you should read this news. In such a situation, the SBI has come up with a special way to avoid taxes. The country's largest bank said the case could be avoided with TDS (Tax Deducted at Source).

In fact if no income tax return has been filed in the last three years and an amount of Rs 20 lakh or more is withdrawn annually then TDS is deducted under Section 194N.Let us know about it.

What should you do

• For this, first you have to submit your PAN card details to the bank. If you have already provided PAN card details, you will not need to submit it a second time.

• Not having a pen card increases taxes.

• The bank will have to provide details of its income tax return.

Interest will have to be paid from 1st July 2020

• If you have not filed an income tax return even once in the last 3 years, you will have to pay interest at this rate from July 1, 2020.

• If you withdraw cash of Rs 20 lakh per annum, you will not have to pay any interest in case of deposit or non-deposit.

• If you withdraw cash from Rs 20 lakh to Rs 1 crore and deposit pen card details, you can get 2% tax cut. 
•  If PAN card details are not credited, 20% TDS will have to be paid.

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The SBI has also said that customers who have not filed an income tax return in any of the last three years will be taxed at 2 per cent on exports above Rs 1 crore.