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WHAT IS THE TDS RATE ON CASH WITHDRAW FROM BANK OR POST OFFICE

If a person has not filed an income tax return (ITR) in the previous three financial years, cash withdrawals from his or her savings or current bank account would be subject to TDS if the total amount withdrawn in a financial year exceeds Rs 20 lakh.

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WHAT IS THE TDS RATE ON CASH WITHDRAW FROM BANK OR POST OFFICE

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  1. TDS on heavy cash withdraw from Banks/ Post office SECTION-194N VINOD K AGRAWAL & ASSOCIATES, CA

  2. Introduction With the change to the Finance Act of 2020, section 194N was replaced with 83A, which applies a 2% TDS on withdrawals of more than Rs. 1 crore. This clause went into effect on July 1, 2020.

  3. Who are the person including: Individuals HUF Company Partnership firms or LLP Local authorities Any association of Person (AAOP) or Body of Individuals (BOI) Any other assesses

  4. What is the limit to withdraw cash? TDS is levied on cash withdrawals in excess of Rs. 1 crore in a financial year under section 194N.

  5. Under this organization, who is responsible to deduct TDS Any bank covered under Banking Regulation Act, 1949 A co-operative society carrying on the business of banking A post office

  6. Person who are exempted under section 194N If the cash are withdrawn from the following beneficiaries, no tax will be deducted: Banks Cooperative societies Operators of white-label ATMs Any other person whom the central government has notified in consultation with the RBI. Post office Banking correspondents Central or State governments

  7. WHAT IS THE RATE OF TDS? 2% on cash withdrawal if the amount exceed Rs. 1 crore

  8. The limit of tax deduction is 20 lakh if a person has failed to file the ITR for the previous 3 financial years. @ 2% on the amounts withdrawn from 20 lacs to Rs. 1 cr. And @ 5% in excess of withdrawal of Rs. 1 crore.

  9. THANKYOU For more details contact us through our website: https://cavkagrawal.business.site/ VINOD K AGRAWAL & ASSOCIATES, CA

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