Regarding section 194 N

You may be hit by 269ST / 269SS

Since you have money transaction shop. What exactly is the activity in CASH ?

I have a shop of money transaction..such like western union .

Payment of certain amounts in cash.

194N. Every person, being,—

  (i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);

 (ii) a co-operative society engaged in carrying on the business of banking; or

(iii) a post office,

who is responsible for paying any sum, or, as the case may be, aggregate of sums, in cash, in excess of one crore rupees during the previous year, to any person (herein referred to as the recipient) from one or more accounts maintained by the recipient with it shall, at the time of payment of such sum, deducts an amount equal to two per cent of sum exceeding one crore rupees, as income-tax:

Provided that nothing contained in this sub-section shall apply to any payment made to,—

  (i) the Government;

 (ii) any banking company or co-operative society engaged in carrying on the business of banking or a post office;

(iii) any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934 (2 of 1934);

(iv) any white label automated teller machine operator of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 (51 of 2007);

 (v) such other person or class of persons, which the Central Government may, by notification in the Official Gazette, specify in consultation with the Reserve Bank of India.]

The limit of RS. 1 Crore is a bank-wise limit. Each bank would separately evaluate whether you have withdrawn 1 Crore from your account. Thus, if open multiple accounts with multiple banks you may escape deduction of tax. The provisions of 194N is effective from 1 Sep 2019.

But risk remains of 269SS and 269ST

Either it may attract 269SS or 269ST. In my opinion since its a money transfer business 269SS may not apply. The term "deposit" is duly defined under Section 269SS but yes 269ST may apply if the transaction is Rs. 2 Lakhs or more.

@ DARSHANJAIN .. YOU HAVE ANY NOTIFICATION WHICH CLARIFIES YOUR STATEMENT. I ALSO THINK THAT LIMIT IS ACCORDING TO BANKS. BUT WHEN I'M ADVISING THE PEOPLE THEY ASKS THAT THEIR PAN WILL BE LINKED WITH EVERY ACCOUNT THEN ITD WILL KNOWS BETTER. AND THE STUPID BANK MANAGERS ARE ALSO GIVING ADVISES TO CLIENTS THAT TO OPENING MULTIPLE ACCOUNTS IS NOT AN END.

Multiple accounts in one bank doesn't solve the problem. It is bank accounts in different banks which saves the issue of TDS.  So of course yes, what you are advising is right, the limit is qua-bank. There is no notification etc. and my statement is as per the provisions of Section 194N. Obviously one must not forget the provisions of 285BA as well.

Okk....good discussion

Sec 194 N has been inserted from sep 1 2019.
threshold limit rs.1 crore.
tax is deductible at the rate of 2 percent of payment in cash exceeding rs.1 crores.
exemption is appkicable when cash payment is made to certain recipients such as the govt.
banking comp.,
co operative society.
any business correspondent of a banking co.
any white label atm operator...
such other person as notified by the central govt.

Very good discussion
if my turnover is exceeding to 3-4 Crore
and TDS is deducting too..and I'm doing business of money transfer. and my business is not registered in gst too.
then there may be any prblm in getting the TDS refund