Section 294 N

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tds on cash withdrawal is applicable on partnership firm if withdrawn amount is more than 20 lack & upto 1 crore & previous year return is not filled.
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The Bank ect. 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 Person receiving the money has not filed income tax return for three years immediately preceding the year, then the TDS is 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.

So, TDS is applicable in your case, if your preceding 3 Years return has not been filed.. otherwise applicable Only after crossing limit of 1 Crore.

TDS is applicable on cash withdrawal limit exceeds 1 crore rupees and bank shall deduct TDS  @ 2% of sum exceeding Rs. 1 Crore

And In case the recipient has not filed the income tax return for preceding 3 financial years: TDS will be deducted at 2% on Rs. 20 lakhs to 1 crore amount withdrawn and 5% on the amount exceeding Rs. 1 crore during the financial year.


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