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Section 194N

Jyoti Narang (Kkk) (1202 Points)

31 July 2020

if tds is deducted Under 194n then on e filling portal in which head such income is to be shown. as after importing 26as on the column it is asking for source of income from which tds is deducted on tds page.

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8 Replies

sabyasachi mukherjee (26047 Points)
Replied 31 July 2020

You know better than anyone else.

Ravi SADhiyan (Practice) (4510 Points)
Replied 31 July 2020

Originally posted by : Jyoti Narang
	if tds is deducted Under 194n then on e filling portal in which head such income is to be shown. as after importing 26as on the column it is asking for source of income from which tds is deducted on tds page.

It is a tool of Tracking CASH TRANSACTION

Amount on which TDS deducted under section 194N is not a Income as per Income Tax Act.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 31 July 2020

Section 194N, is relating to TDS on cash withdrawal in excess of 1 crore, this section is not related to any Income, So, there is no need to fill up this column/head of income or show any corresponding Income.

kindly let me know
1.Is to select head of income is compulsory as per system?... system allowing you to file without that .
2. Which ITR you are filing?...and in which way, through utility or online.

Jyoti Narang (Kkk) (1202 Points)
Replied 31 July 2020

Yes it's mandatory. and filling Under 44ad

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 31 July 2020

I think this is a issue with departments ITR System,
bacause all other TDS is income based TDS, for which we have to mention head of income compulsory and we can, but New section 194N is not income based, it's based on cash withdrawal so, there is not a income.

I think effect of new section is not considered by department in ITR system. Department have to improve this.

IF you can put "-" dase in head of income (if system allow) than put that and file return, other wise there is no option, according to me

2 Like

sabyasachi mukherjee (26047 Points)
Replied 31 July 2020

Narang

source of income is not solved...

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 31 July 2020

@ Sabyasachi ji

194N is not income,
We withdraw our money from our account, so there is no question of source of income at time of withdrawal.

if we deposited some money in our account at that time, the question of source of income arise.

VIRAAJ VASHISHTH (81 Points)
Replied 26 February 2024

Section 194N TDS on cash withdrawal

Section 194N of the union budget 2019 was initiated for taxpayers who had cash withdrawals of more than 1 crore in any fiscal year. To comply with the conditions in the union budget 2020, the number of TDS that can be deducted was reduced to 20 lakhs for taxpayers who had not filed returns in the preceding three years.

Paying 2 percent in interest for individuals who withdrew above 20 lakhs is mandatory according to the provisions mentioned in the union budget. This article let us further understand Section 194N TDS on cash withdrawals above 1 crore.

What is section 194N?

When an individual has a cash withdrawal of more than 1 crore in any fiscal year, the provisions of section 194N apply. This section applies to all sums or aggregations of money withdrawn from a single tax-payer.....

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