Withdrawal of cash in a single day from savings account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2015 Good Morning Experts !

I had sold my property and I deposit the amount in my savings account. Now I have find a property to purchase, but in this case I need some cash to be paid to the seller, so my query is can I withdraw some cash of 9 lakhs from the money which I got against my property sold, will it attract any TDS?

Please guide
Thank and regards

Ankur Singhal

Ankur Singhal (Expert)
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17 June 2015 Dear TDS in case of purchase of property is applicable if the value as per registry exceeds Rs.50lakhs.
If value does not exceeds Rs.50 lakhs. then no need to deduct TDS.

Yes, you can withdraw money from your saving bank account as you have the justified source for your funds lying in bank account.

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2015 Thank you Ankurji for your reply, if the registry amount is less than 50 lakhs, only concern was if the amount of Rs 9 lakhs is withdrawn from the amount which was registered at the time of sale of agreement, will there be any reconcile of this amount being lesser since I will be adding some loan amount on re-investing it in the new property.

Kindly guide

Thanks once again

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 Great question! Here’s how it works:

Cash withdrawal from savings account (like Rs 9 lakhs) — any TDS or tax implication?
No TDS or tax is applicable just because you withdraw Rs 9 lakhs cash from your savings account.
Banks generally do not deduct TDS on cash withdrawals.

However, large cash withdrawals may attract scrutiny from tax authorities under anti-money laundering rules and cash transaction reporting norms.

Regarding purchase of property and TDS:
When you buy property, the buyer must deduct TDS @1% if the sale consideration exceeds Rs 50 lakhs (Section 194-IA).

If the purchase price is less than Rs 50 lakhs, no TDS deduction is required by the buyer.

The withdrawal of cash from your savings account for payment to the seller does not itself attract TDS.

About reconciliation and loan amount:
When you re-invest the sale proceeds in another property, you can include loan amount as part of the purchase cost for your income tax purposes.

The actual cash withdrawal or mode of payment (cash, cheque, transfer) does not affect tax treatment, but it’s advisable to maintain proper documents to justify source of funds and mode of payment.

Key points to keep in mind:
Maintain proof of sale proceeds deposited in your bank account.

Keep documentation of the withdrawal and use of funds (like payment to seller, loan agreement, etc.).

Be ready to explain the source and application of funds if asked by tax authorities.

Cash payment in property deals can sometimes raise red flags, so ensure the seller issues a proper receipt.

Summary:
You can withdraw Rs 9 lakhs cash from your savings account without TDS. No tax implication arises solely due to cash withdrawal. TDS is relevant only on the buyer's side if property purchase price exceeds Rs 50 lakhs.

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