Section 194- N

In this article we will discuss TDS under section 194 N

• This section was made applicable from 1^st 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-

• 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.