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TDS on cash withdrawal u/s 194N

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Rohit Shrimal

1 Points Posted on 16 September 2022

I have confusion in Section 194N that whether TDS would be deducted on Gross Amount i.e. ₹1Cr or ₹20Lacs
Or In excess of withdrawal exceeding ₹1 Cr or 20lacs.
I have go through the CBDT Circular in this regard but not properly understand the requirement of this section.

Please Explain

Replies (3)

Quick Summary

This discussion clarifies confusion surrounding Section 194N of the Income Tax Act, specifically regarding Tax Deducted at Source (TDS) on cash withdrawals. The core question is whether TDS applies to the gross withdrawal amount or only to the amount exceeding the specified thresholds (₹20 lacs or ₹1 crore). The user seeks a clear explanation of the section's requirements and whether the deducted TDS is refundable.