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Tds on cash withdrawal

423 views 7 replies

Vanktesh Goyal

9 Points Joined August 2019

is Tds is required on withdrawal of cash more than 1 crore in a F.Y. from bank?
if yes then at what rate and who will deduct it and under what section?

Replies (7)

Pritam Tiwari

Owner

162 Points Joined June 2019

Bank is liable to deduct TDS u/s. 194N for the cash withdrawal, if exceed 1 cr.; at 2% rate.

Vanktesh Goyal

9 Points Joined August 2019

For all assesses? or it is applicable on notified assesses only?

Kapadia Pravin

17264 Points Joined December 2018

@ Vanktesh

TDS under 194N is for all assesses

The TDS will be deducted only on the withdrawal amount exceeding 1 Crore in aggregate during the year.

sabyasachi mukherjee

28101 Points Joined May 2017

Sec 194 N w.e.f. AY 20-21
SURCHARGE ON cash withdrawal if it exceeds Rs. 1 crore .

Kapadia Pravin

17264 Points Joined December 2018

@ Vanktesh

Only 1% TDS on the withdrawal amount exceeding 1 Crore in aggregate during the year.
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Surcharge and Cess are IGNORED for TDS purposes .

1. With effect from AY 2019-20 cash withdrawal from the bank in excess of Rs. 1 crore will attract TDS u/s 194N @ the rate of 2% for the amount exceeding Rs. 1 crore. This is applicable for all the assessees.
2. No surcharge will be applicable on the above deduction.
Please correct me if the above solution has an alternative view.