Home > TDS > TDS on Cash Withdrawals Last Updated: Dec 05th 2023
To discourage cash withdrawals from banks, post offices, TDS is introduced u/s 194N. Learn more on applicability, exceptions, tds rates due dates, tds returns. Section 194N is effective from 01st September 2019.
This document covers
The following persons are required to deduct TDS on the cash withdrawals exceeding Rs 1 crore during the financial year
Total withdrawal - 1.4 crores
Less : Threshold : 1 crore
Amount exceeding Rs 1 crore - 40 lakhs
TDS @ 2% - 80,000
(> Rs 20 lakhs and <= Rs 1 crore) (Rs 80 lakhs * 2%) = Rs 1,60,000
(> Rs 1 crore) (Rs 40 lakhs * 5%) = Rs 2,00,000
Total TDS to be deducted by the bank is (1,60,000 + 2,00,000) = 3,60,000
TDS needs to be deducted at the time of payment of such sum
TDS deduction on cash withdrawal done by the following persons
TDS u/s 194N is not applicable on the payments made to
The due date for payment of TDS deducted u/s 194J is within 7 days from the end of the month in which deduction is made. However, for the March month, due date is April 30
If you are earning income from house property and the combined income per year is more than Rs. 2.5 lakhs, you need to file your yearly income tax. Failed to do so, higher TDS rates are applicable. Learn more on this topic @ Higher TDS / TCS rates for not filing of IT Returns
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.