TDS On Cash Withdrawal – Tax Deducted But Not On "Income"- A Legal Conundrum

With an aim to discourage cash transactions and move towards a cashless economy, the first budget of Modi Government 2.0 has proposed to levy TDS @2% on cash payments in excess of Rs. 1 CR in aggregate made during the year, by a banking company or corporate bank of post office, to any person from one or more accounts maintained by the recipient.