Tax on Cash Withdrawal above Rs 1 Crore

In order to promote digital financial transactions and curb cash transactions, the government has introduced Section 194N in the Union Budget of 2019. This section is further amended by the Finance Act 2020, where tax has been imposed in the form of TDS on cash withdrawal above Rs 1 crore by any taxpayer.



Deduction under section 80DDB of Income Tax Act

The Income Tax Act has a section that allows a deduction from income, in respect of any expenditure incurred by an assessee towards treatment any disease or ailment which is specified under Rule 11DD. Thus where a resident assessee has incurred any expenditure for medical treatment of specified disease, for himself or a dependant, such assessee shall be allowed a deduction, under section 80DDB, in the year in which such amount was paid.