09 December 2021
1. The payer will have to deduct TDS at the rate of 2% on the cash payments/withdrawals of more than Rs 1 crore in a financial year under Section 194N.
In case the individual receiving the money has not filed income tax return for three years immediately preceding the year, then the limit of tax deduction is Rs 20 lakh. The TDS will be deducted at: -2% on the cash payments/withdrawals of more than Rs 20 lakh and up to Rs 1 crore, and -5% for withdrawal exceeding Rs 1 crore.
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