With effect from Finance Act 2019, section 194N has come into existence, which has imposed TDS liability on Payer when any cash payment exceeding Rs. 1 crore is made (individually or in aggregate) during the financial year to Payee.
Rate of TDS
2%
Payer
- Banking company
- Co-operative society carrying business of banking
- Post office
Payee/Recipient
Any person except following
- Government;
- Banking company or co-operative society engaged in carrying on the business of banking or a post office;
- Business correspondent of a banking company or co-operative society.
- Any white label automated teller machine operator of a banking company or co-operative society.
Special Points
- Suppose a customer is having multiple accounts with his banks then TDS provision would be applied considering provision of all such accounts in aggregate.