Menu
Section 294 N
tds on cash withdrawal is applicable on partnership firm if withdrawn amount is more than 20 lack & upto 1 crore & previous year return is not filled.
Replies (2)
Quick Summary
The Bank ect. will have to deduct TDS at the rate of 2% on the cash payments/withdrawals of more than Rs 1 crore in a financial year under Section 194N.
In case the Person receiving the money has not filed income tax return for three years immediately preceding the year, then the TDS is 2% on the cash payments/withdrawals of more than Rs 20 lakh and up to Rs 1 crore, and 5% for withdrawal exceeding Rs 1 crore.
So, TDS is applicable in your case, if your preceding 3 Years return has not been filed.. otherwise applicable Only after crossing limit of 1 Crore.
In case the Person receiving the money has not filed income tax return for three years immediately preceding the year, then the TDS is 2% on the cash payments/withdrawals of more than Rs 20 lakh and up to Rs 1 crore, and 5% for withdrawal exceeding Rs 1 crore.
So, TDS is applicable in your case, if your preceding 3 Years return has not been filed.. otherwise applicable Only after crossing limit of 1 Crore.
TDS is applicable on cash withdrawal limit exceeds 1 crore rupees and bank shall deduct TDS @ 2% of sum exceeding Rs. 1 Crore
And In case the recipient has not filed the income tax return for preceding 3 financial years: TDS will be deducted at 2% on Rs. 20 lakhs to 1 crore amount withdrawn and 5% on the amount exceeding Rs. 1 crore during the financial year.
Recent Topics :
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
- Sell of CAFC books
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
Related Topics :
CAclubindia
