India: Government exempts cash payments above INR10mn via AMPC from 2% TDS

  • In a relief to the farm sector, the government has decided not to levy 2% tax deduction at source (TDS) on cash payments of over INR10mn made through Agriculture Produce Market Committees (APMCs).
  • The government had made the provision of levying 2% TDS on cash withdrawals exceeding INR10mn in the Union Budget with an aim to discourage cash transactions and move towards a less-cash economy.
  • Meanwhile, in another tweet, the minister said an additional 15% depreciation will be allowed on motor vehicles purchased between 23 Aug 19, and 31 Mar 20.
  • “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% as against the normal rate of 15%.
  • While in the case of buses, lorries and taxis, the depreciation rate has been enhanced to 45% from 30%. Depreciation helps companies reduce tax liabilities.

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