Can I withdraw morethan 3 crore cash from 3 different bank

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This discussion clarifies the rules around withdrawing large amounts of cash from different banks in the UK. You can withdraw up to £1 crore from each individual bank account per financial year without incurring Tax Deducted at Source (TDS). Therefore, withdrawing £3 crore from three separate banks is permissible under these limits. Any amount exceeding £1 crore per bank will be subject to a 2% TDS under Section 194N, unless you haven't filed income tax returns for three consecutive years, in which case higher rates may apply.

SARAN KUMAR

SARAN KUMAR

(Querist)
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07 March 2020 Dear All,

I have some doubts about TDS on Cashwithdrawal from Bank.Following are my doubt please help me.

1) Can I withdraw morethan 3 crore cash from 3 different bank?

2) What is the applicability of TDS 194N in the above example?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 March 2020 The limit of Rs 1 crore in a financial year is with respect to per bank or post office account and not a taxpayer’s individual account. For example, a person having three bank accounts with three different banks, he can withdraw cash of Rs 1 crore * 3 = Rs 3 crores without any TDS.

Eswar Reddy S

Eswar Reddy S (Expert)
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08 March 2020 You cant withdraw more than 3 cores . 1crore per bank. Beyond this limit shall attract Tds @2% on the entire amount under section 194N. It's a new section and it is applicable from AY-2020-21 Only

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 March 2020 Seems TDS @ @2 % attracts on the excess over Rs. 1 crore per bank in a financial year.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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31 August 2020 In case the individual receiving the money has not filed income tax return for three years immediately preceding the year, then the TDS is 2% on the cash payments/withdrawals of more than Rs 20 lakh and up to Rs 1 crore, and 5% for withdrawal exceeding Rs 1 crore.

The e-filing website of the income tax department has introduced the facility to check whether the individual has filed ITR for last three financial years or not and the rate of TDS leviable on the amount of cash withdrawn.

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