Section 194- N

TDS 82 views 1 replies

In this article we will discuss TDS under section 194 N

  • This section was made applicable from 1st of September 2019.
  • It provides for deduction of TDS on excess cash withdrawal from Bank, cooperative bank and post office.
  • If cash withdrawal exceeds Rs. 1 crore in PY then TDS @ 2% is required to be deducted by payer bank.
  • If payee has not filed ITR in preceding 3 previous years then TDS shall be deducted as follows-

                              

Rate

Cash withdrawal

2%

Rs. 20 lakhs upto Rs. 1 Crore

5%

Excess of Rs. 1 Crore

 

  • Therefore for previous year 22-23 the above limits will be applicable if assessee not filed ITR for PY 21-22,20-21,19-20 respectively.  
  • However this section not applies on cash withdrawal by-
  1. Central/state Government
  2. Bank
  3. White label ATM operator
  4. Cash replenishment agencies
  5. Agriculture produce market committee
  6. Full fledged Money changer and authorized dealer.

 

Replies (1)

Thanks for information..                   


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register