Cash Withdrawal Limit from Bank
Raj Thakkar (ARTICLE) (382 Points)
02 February 2023Raj Thakkar (ARTICLE) (382 Points)
02 February 2023
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 02 February 2023
There is no prescribed limit for withdrawal of cash from bank, as per IT act; but banks have set some rules as per different types of accounts.
As per IT act, banks are required to deduct TDS when the withdrawal has exceeded the limit as per sec. 194N of the act.
According to section 194N of the Act, TDS has to be deducted if a sum or aggregate of sum withdrawn in cash by a person in a particular FY exceeds :
Note:
1. TDS will be deducted at a rate of 2% on cash withdrawals in excess of ₹ 1 crore if the person withdrawing the cash has filed income tax return for any or all three previous AYs.
2. TDS will be deducted at 2% on cash withdrawals of more than ₹ 20 lakh and 5% for withdrawals exceeding ₹ 1 crore if the person withdrawing the cash has not filed ITR for any of the preceding three AYs
Ayush
(Executive )
(6760 Points)
Replied 25 September 2023
Note : As of the Budget 2023, co-operative societies can withdraw up to ₹3 crores in cash from their bank accounts without any TDS liability. If they withdraw more than ₹3 crores in cash, TDS will be applicable on the excess amount.