ABC bank provides the following information relating to cash withdrawals by its two customers during the P.Y.2023-24: Date of cash withdrawal Mr.…

CA Final · Direct Tax Laws and International Taxation · RTP · May 2024
ABC bank provides the following information relating to cash withdrawals by its two customers during the P.Y.2023-24: Date of cash withdrawal Mr. Arjun (Savings Account) (₹) XYZ Co-operative Society (Current Account) (₹) 12.04.2023 20,00,000 9.05.2023 - 68,00,000 15.06.2023 25,00,000 19.07.2023 - 85,00,000 18.10.2023 35,00,000 5.11.2023 - 88,00,000 22.12.2023 25,00,000 03.01.2024 - 57,00,000 Co-operative society regularly files its return of income. However, Mr. Arjun has not filed his return of income for the last three years. Would cash withdrawals by Mr. Arjun and XYZ Co-operative society during the P.Y. 2023-24 attract deduction of tax at source? If yes, how much tax would be deductible by ABC bank.
(A) Yes; ₹ 1,85,000 and - 3,96,000, respectively
(B) Yes; ₹ 1,85,000 and - 5,56,000, respectively
(C) Yes; ₹ 10,000 and - 3,96,000, respectively
(D) ₹ 1,85,000 in respect of cash withdrawals by Mr. Arjun and no tax is required to be deducted from cash withdrawals by the co-operative society.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

₹ 1,85,000 in respect of cash withdrawals by Mr. Arjun and no tax is required to be deducted from cash withdrawals by the co-operative society.

Topics: Double Taxation Relief, Assessment of Various Entities, Non-Resident Taxation

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