24 January 2024
My client was making a payment through Agoda travel agent for hotel booking worth Rs 23000.
He got this msg from SBI bank:
*Dear Customer, TDS of INR 2,301.90 deducted in account no XXXXX629200 on account of cash withdrawals under section 194N of Income Tax Act-SBI*
He contacted Bank inquiring about the same. Bank said it will show as TDS in your account however it is TCS deducted by bank. It is understood that this is tcs on foreign remittance. But still it does not match with the rules as according to rules tcs is 5% below 7 lakh remittance and 20% above it. And my client has not exceeded the limit. However once he had converted 4 lakh rupee to dollar but it was not used and again recoverted to rupee.
How can we challenge this in income tax dept. Pls guide
CAclubindia
