194N & 194NF

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Query on difference between TDS provisions u/s 194N and 194NF. It was clarified that Section 194N applies to high-value cash withdrawals beyond specified limits from bank accounts, while Section 194NF applies to cash income distributions by Business Trusts and Investment Funds, and TDS under 194NF may be refundable through ITR filing.

Marripally Sreedhar

Marripally Sreedhar (Querist)

21 July 2023 What is the difference between 194N & 194 NF. The TDS under 194NF is refundable.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 July 2023 TDS u/s. 194N:
Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society (wef 01.09.2019) SEC. 194N IT ACT..
Cash withdrawal in excess of 20 LAKHS during the previous year from 1 or more account with a bank or co-operative society (wef 01.07.2020) BY NON FILERS OF LAST THREE ITRS SEC. 194NF IT ACT..

Yes, the TDS deducted is refundable by filing ITR.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 September 2024 Section 194NF is all about cash income distributions. It is aimed at Business Trusts and Investment Funds that distribute income in cash, like dividends or profits. It came into effect from April 1, 2021.

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