Section 194- N

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.

 

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