Section 194 N exemption

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673 Points Posted on 22 October 2020
my client is regularly filing IT Return since last 10 years. he withdraws cash Rs. 5 lakhs. bank authorities told him that if he withdraw cash more than 20 lakhs during FY they will deduct Tax. TDS
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On 22 October 2020 at 16:44 Report
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This discussion clarifies Section 194N of the Income Tax Act concerning TDS on cash withdrawals. While banks typically deduct TDS on withdrawals exceeding Rs 1 crore, a lower limit of Rs 20 lakh applies if your income tax returns haven't been filed on time. It's advised to provide your last three years of IT returns to your bank and confirm the specifics with the Income Tax Department.

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11 Points Posted on 22 October 2020

As per section 194N added on 01.09.2019  Banks & Post office required to deduct TDS @ 2% on cash withdrawal in excess of Rs1Cr 

TDS will only be deducted on amount in excess of Rs1Cr.

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On 22 October 2020 at 18:10
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3924 Points Posted on 23 October 2020
Please submit to Bank Authority ,last three years returns you have filled , If not filed within time limit under section 139(1) of the I T Act ,then limit of 20 lac is applicable as per proviso in section 194 N of the Income Tax act . Inform them to confirm from Income Tax Department also .
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On 23 October 2020 at 07:46

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