The Applicability and Implications of Amendments to the Finance Act 2020: A Comprehensive Guide

Cash Withdrawal Limit and PAN/Aadhaar Requirement

The Finance Act 2020 introduces significant amendments that impact cash withdrawal limits and the obligation to provide PAN or Aadhaar numbers. As per the new provisions:

The cash withdrawal limit for the current financial year (FY) will be taken into consideration.

Individuals are now required to quote their PAN or Aadhaar number for cash deposits and withdrawals exceeding a certain threshold in a financial year.

Section 194N: TDS on Cash Withdrawals

Section 194N of the Income Tax Act imposes TDS on cash withdrawals. According to this section, TDS must be deducted if the following conditions are met:

• The amount or aggregate amount of cash withdrawn in a fiscal year exceeds Rs. 20 lakhs.
• The cash withdrawal is made from a financial institution.

Presenting Cardless Cash Withdrawal: A Convenient and Secure Option

In addition to the amendments to the Finance Act, ICICI Bank has introduced a convenient and secure service called Cardless Cash Withdrawal. This service allows customers to:

• Withdraw cash 24x7 from ICICI Bank ATMs without a physical card.
• Log in to the ICICI Bank mobile app to initiate the withdrawal process.

ATM Transaction Charges

In June 2022, the Reserve Bank of India (RBI) allowed banks to charge up to Rs. 21 per transaction at ATMs beyond a certain monthly limit. This change aims to encourage digital payments and reduce the reliance on cash.

Conclusion

The amendments to the Finance Act 2020 and the introduction of Cardless Cash Withdrawal have significant implications for individuals and businesses. By understanding these changes and adopting appropriate measures, individuals can avoid penalties and take advantage of the convenience provided by digital banking services.