Cash withdrawal limit incase of Pvt Ltd company

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DIVYESH JAIN (Querist)
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16 July 2021 Dear Sir,

What is the cash withdrawal limit incase of a Pvt Ltd company in one financial year?

Regards,
Divyesh Jain

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 July 2021 If withdrawal is from bank, the limit is ONE Crore with out attracting section 194N of the Income tax Act,1961.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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16 July 2021 I am having excess bank balance in the company's account and want to withdraw this money without showing as an expense. Is cash withdrawal the right option?

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CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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16 July 2021 How do you intend to use that cash after withdrawal, also matters.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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16 July 2021 Yes, will be using that cash to book expenses but in small amounts every year.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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16 July 2021 You may withdraw but if the threshold limit for cash withdrawal exceeds the limit, then TDS u/s 194N would apply. That is the bank would deduct tax at source on such withdrawals. For more, refer section 194N.

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