Non-Filers tax on cash withdrawals are expected to be increased by the government in the fiscal year 2025-26 budget plan, targeting an additional 15 to 20 billion rupees in revenue.
That’s why a proposal is under consideration. The proposal suggested increasing the tax from 0.6 % to 1.2% on cash withdrawals from banks by non-filers. In addition to this, cash withdrawals over 50,000 rupees through ATMs or credit cards by non-filers are subject to 0.6% withholding tax.
Moreover, the Finance Act 2023 has renewed the tax on cash withdrawals from those who are not on the ATL (Active Taxpayer List). Banks must have cut the advanced adjustable tax at 0.6% from people who are not on ATL when their one-day cash withdrawals increased from 50,000 rupees, according to Section 231AB. The act applies to withdrawals from credit cards and ATMs as well. The tax is cut at the time of payment for total withdrawals of a day, aiming to encourage more individuals to become active taxpayers.
