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Cash Withdrawal Limit from Bank

Raj Thakkar (ARTICLE) (371 Points)

02 February 2023

What is the maximum amount that can be withdrawn from bank in a single day considering the provisions of income tax and other act if any.please guide.

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 02 February 2023

There is no prescribed limit for withdrawal of cash from bank, as per IT act; but banks have set some rules as per different types of accounts.

As per IT act, banks are required to deduct TDS when the withdrawal has exceeded the limit as per sec. 194N of the act.

According to section 194N of the Act, TDS has to be deducted if a sum or aggregate of sum withdrawn in cash by a person in a particular FY exceeds :

₹ 20 lakh (if no ITR has been filed for all the three previous AYs), or
₹ 1 crore (if ITRs have been filed for all or any one of three previous AYs).

Note:

1. TDS will be deducted at a rate of 2% on cash withdrawals in excess of ₹ 1 crore if the person withdrawing the cash has filed income tax return for any or all three previous AYs.

2. TDS will be deducted at 2% on cash withdrawals of more than ₹ 20 lakh and 5% for withdrawals exceeding ₹ 1 crore if the person withdrawing the cash has not filed ITR for any of the preceding three AYs

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Ayush (Executive ) (6232 Points)
Replied 25 September 2023

Note : As of the Budget 2023, co-operative societies can withdraw up to ₹3 crores in cash from their bank accounts without any TDS liability. If they withdraw more than ₹3 crores in cash, TDS will be applicable on the excess amount.