TDS ON CASH WITHDRAWALS...
This query is : Resolved
Quick Summary
09 July 2026
Under the Income-tax Act, 2025 (effective from 1 April 2026), if the aggregate cash withdrawals from a bank account exceed ₹1 crore during the financial year, is the bank mandatorily required to deduct TDS under Section 393(3)?
Further, if the account holder has filed the Income-tax Return (ITR) and provides a copy of the filed ITR to the bank as proof of being an ITR filer, is the bank still required to deduct TDS, or can TDS be waived on that basis?
Further, if the account holder has filed the Income-tax Return (ITR) and provides a copy of the filed ITR to the bank as proof of being an ITR filer, is the bank still required to deduct TDS, or can TDS be waived on that basis?
09 July 2026
Yes, the bank is mandatorily required to deduct TDS under Section 393(3) of the Income-tax Act, 2025, and providing proof of filing an ITR will not waive this deduction.
09 July 2026
TDS Thresholds and Rates for FY 2026-27
Account Holder Status Withdrawal Threshold TDS Rate
Regular ITR Filers (Filed returns in previous years)Exceeding ₹1 Crore 2%
Non-ITR Filers (Defaulted in filing for past 3 years)₹20 Lakh to ₹1 Crore 2%
Exceeding ₹1 Crore 5%
Account Holder Status Withdrawal Threshold TDS Rate
Regular ITR Filers (Filed returns in previous years)Exceeding ₹1 Crore 2%
Non-ITR Filers (Defaulted in filing for past 3 years)₹20 Lakh to ₹1 Crore 2%
Exceeding ₹1 Crore 5%
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