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TDS ON CASH WITHDRAWAL RATES F

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Devinder Kumar

7 Points Posted on 12 December 2022

whats is the tds rate on cash withdrawal f.y. 202 23

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Quick Summary

This discussion clarifies the Tax Deducted at Source (TDS) rates applicable to cash withdrawals for the financial year 2022-23. For regular tax filers, TDS is 2% on withdrawals exceeding £1 crore annually. However, if the recipient hasn't filed tax returns for the past three years, the threshold drops to £20 lakh, with TDS at 2% for amounts between £20 lakh and £1 crore, and 5% for withdrawals over £1 crore.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212447 Points Posted on 12 December 2022

If the cash withdrawer is regular tax filer....

The payer 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.

But, If the individual receiving the money has not filed an income tax return for three years immediately preceding the year, the tax deduction limit is reduced to Rs 20 lakh.

The TDS will be deducted at:
-2% on the cash payments/withdrawals of more than Rs 20 lakh and up to Rs 1 crore
-5% for withdrawal exceeding Rs 1 crore.