TDS on Cash Withdrawals!! All about S-194N of IT Act, 1961

TDS on Cash Withdrawals!! All about S-194N of IT Act, 1961

Payer - Banking Company, Co-op. Society or Post Office. Payee - Any Person {including NR} Type of Payment - Cash withdrawn from one or more accounts maintained Time of Deduction - Payment of cash TDS Rate - 2 % of amount in excess of limit Limit > 1,00,00,000 {1 Crore} Recipient who has not filed R.O.I. for all of the 3 AY’s relevant to 3 PY’s, for which the time limit to file R.O.I. u/s. 139(1) has expired, immediately preceding the PY in which cash is withdrawn. The provisions will be modified as below – Limit > 20,00,000 {20 Lakhs} Upto 20,00,000 - No TDS > 20,00,000 and < 1,00,00,000 - 2% TDS > 1,00,00,000 - 5% TDS Effective from On or after 01.07.2020 The limit of Rs 1 crore has to be seen for cash withdrawals made from all branches of a bank. The cash withdrawals from two different banks shall not be aggregated for the limit of ₹ 1 Crore. No TDS on payment made to Central or State Government/ Banks/ Co-op. Banks/ Post Office/ Banking correspondents/ ATM operators/ Commission agent or trader, operating under Agriculture Produce Market Committee (APMC)