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Budget 2019: Tea Industry Seeks Exemption From TDS On Cash Withdrawal

Imposition of 2 percent TDS on cash withdrawals would compromise liquidity position of tea estates, says Indian Tea Association.

There are inadequate banking facilities in tea-growing areas, due to which workers are paid in cash, says Indian Tea Association. (Photographer: Sanjit Das/Bloomberg)
There are inadequate banking facilities in tea-growing areas, due to which workers are paid in cash, says Indian Tea Association. (Photographer: Sanjit Das/Bloomberg)

Tea industry body Indian Tea Association on Saturday sought from the Union Finance Ministry exemption from imposition of 2 percent Tax Deducted at Source on cash withdrawals exceeding Rs 1 crore from banks in a year—as proposed by Finance Minister Nirmala Sitharaman’s Union Budget 2019-20 on Friday.

The Indian Tea Association in a statement said that there are inadequate banking facilities in tea-growing areas, due to which workers are largely paid in cash.

The tea body said that the imposition of 2 percent TDS on cash withdrawals would compromise with the liquidity position of the tea estates.

The Indian Tea Association also sought a modification to the budget proposal that multiple labour laws in India would be streamlined in a set of four labour codes.

"The code on wages has proposed a national minimum wage. It is urged that due recognition be given to wages paid in kind to the workers by the management," it said.