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TDS calculation

27 September 2020

Friends please tell me that what amount will cut as TDS if I cash withdraw 21 lakh from bank and I didn't file any ITR from last 3 years.

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5 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 September 2020

194N provides that if person withdrawing cash has not filed return of income for three previous years, tax shall be deducted at the rate of 2% on cash withdrawal exceeding Rs. 20 lakhs and 5% on cash withdrawal exceeding Rs. 1 crore."

So, in your case TDS of 2% on Rs. 1,00,000/-

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Mohd Khalid (493 Points)
Replied 27 September 2020

Thanks sir I was just confirming that TDS will cut on whole amount i.e 21lakh or amount exceeding 20lakh

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 September 2020

Ok, it's on amount exceeding 20 Lakh only.

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Mohd Khalid (493 Points)
Replied 27 September 2020

Sir I want to confirm one more thing that if someone withdrew Cash Rs 1core 1 lakh and condition is same that he has not file his itr from last 3 year than TDS will deduct 2% on 80 lakh i.e 1.6 lakh and 5% on 1lakh i.e 5000 means total TDS will deduct 1.65 lakh