Section 194N TDS Query

TDS shall be deducted by banks, co-operative societies in banking business and post offices @ 2% on cash withdrawals exceeding 1 crore during a financial year

A provision has been inserted stating that :

"Provided that in case of recipient who has not filed returns of income for all of the three assessement years relevant to three previous years....... "

in such case TDS shall be deducted -

2% for cash withdrawals exceeding 20 lakha but less than 1 crore (or)

5 % for cash withdrawals exceeding 1 crore

𝗤𝘂𝗲𝗿𝘆 : 𝗦𝗵𝗼𝘂𝗹𝗱 𝗜𝗧 𝗿𝗲𝘁𝘂𝗿𝗻𝘀 𝗯𝗲 𝗳𝗶𝗹𝗲𝗱 𝗳𝗼𝗿 𝗮𝗹𝗹 𝟯 𝗽𝗿𝗲𝘃𝗶𝗼𝘂𝘀 𝘆𝗲𝗮𝗿𝘀 𝗽𝗿𝗶𝗼𝗿 𝘁𝗼 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿 𝘄𝗵𝗲𝗿𝗲 𝘄𝗶𝘁𝗵𝗱𝗿𝗮𝘄𝗮𝗹𝘀 𝗼𝗰𝗰𝘂𝗿 𝘁𝗼 𝗮𝗹𝗹𝗼𝘄 𝗱𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗹𝗶𝗺𝗶𝘁 𝗼𝗳 𝟭 𝗰𝗿𝗼𝗿𝗲 𝗮𝗻𝗱 𝘁𝗮𝘅 𝗿𝗮𝘁𝗲 𝗼𝗳 𝟮% ? (𝗼𝗿)

𝗛𝗶𝗴𝗵𝗲𝗿 𝗱𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗹𝗶𝗺𝗶𝘁 𝗰𝗮𝗻 𝗯𝗲 𝗮𝗹𝗹𝗼𝘄𝗲𝗱 𝗜𝗳 𝘁𝗵𝗲 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗳𝗶𝗹𝗲𝘀 𝗜𝗧 𝗿𝗲𝘁𝘂𝗿𝗻 𝗳𝗼𝗿 𝗮𝗻𝘆 𝗼𝗻𝗲 𝘆𝗲𝗮𝗿 𝗼𝘂𝘁 𝗼𝗳 𝘁𝗵𝗲 𝟯 𝗽𝗿𝗲𝘃𝗶𝗼𝘂𝘀 𝘆𝗲𝗮𝗿𝘀 𝗽𝗿𝗶𝗼𝗿 𝘁𝗼 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿 𝘄𝗵𝗲𝗿𝗲 𝘄𝗶𝘁𝗵𝗱𝗿𝗮𝘄𝗮𝗹𝘀 𝗼𝗰𝗰𝘂𝗿 ?

𝗧𝗵𝗲𝗿𝗲 𝗶𝘀 𝗮𝗺𝗯𝗶𝗴𝘂𝗶𝘁𝘆 𝗶𝗻 𝘁𝗵𝗲 𝘄𝗼𝗿𝗱𝘀 " 𝗿𝗲𝗰𝗶𝗽𝗶𝗲𝗻𝘁 𝘄𝗵𝗼 𝗵𝗮𝘀 𝗻𝗼𝘁 𝗳𝗶𝗹𝗲𝗱 𝗿𝗲𝘁𝘂𝗿𝗻𝘀 𝗼𝗳 𝗶𝗻𝗰𝗼𝗺𝗲 𝗳𝗼𝗿 𝗮𝗹𝗹 𝗼𝗳 𝘁𝗵𝗲 𝘁𝗵𝗿𝗲𝗲 𝗮𝘀𝘀𝗲𝘀𝘀𝗲𝗺𝗲𝗻𝘁 𝘆𝗲𝗮𝗿𝘀.... "

Appreciate consultants or practicing chartered accountants views on this.
Replies (2)
Quick Summary
This discussion seeks clarification on Section 194N of the Income Tax Act, specifically regarding TDS on cash withdrawals. The query focuses on whether IT returns must be filed for all three preceding assessment years to qualify for the higher ₹1 crore withdrawal limit at a 2% TDS rate. Alternatively, it questions if filing for just one of those years would suffice for this increased limit.

𝗜𝗧 𝗿𝗲𝘁𝘂𝗿𝗻𝘀 must 𝗯𝗲 𝗳𝗶𝗹𝗲𝗱 𝗳𝗼𝗿 𝗮𝗹𝗹 𝟯 𝗽𝗿𝗲𝘃𝗶𝗼𝘂𝘀 𝘆𝗲𝗮𝗿𝘀 𝗽𝗿𝗶𝗼𝗿 𝘁𝗼 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿 𝘄𝗵𝗲𝗿𝗲 𝘄𝗶𝘁𝗵𝗱𝗿𝗮𝘄𝗮𝗹𝘀 𝗼𝗰𝗰𝘂𝗿 ....

Sec 194N TDS DETAILS

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details