Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Tds on cash withdrawal

17 September 2019

is Tds is required on withdrawal of cash more than 1 crore in a F.Y. from bank?
if yes then at what rate and who will deduct it and under what section?

Reply
Follow
Share

7 Replies

Pritam Tiwari (Owner) (162 Points)
Replied 17 September 2019

Bank is liable to deduct TDS u/s. 194N for the cash withdrawal, if exceed 1 cr.; at 2% rate.

2 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Vanktesh Goyal (9 Points)
Replied 17 September 2019

For all assesses? or it is applicable on notified assesses only?

Kapadia Pravin (17264 Points)
Replied 17 September 2019

@ Vanktesh

TDS under 194N is for all assesses

The TDS will be deducted only on the withdrawal amount exceeding 1 Crore in aggregate during the year.

1 Like

sabyasachi mukherjee (27719 Points)
Replied 19 September 2019

Sec 194 N w.e.f. AY 20-21
SURCHARGE ON cash withdrawal if it exceeds Rs. 1 crore .

1 Like

Kapadia Pravin (17264 Points)
Replied 19 September 2019

@ Vanktesh

Only 1% TDS on the withdrawal amount exceeding 1 Crore in aggregate during the year.
---------
Surcharge and Cess are IGNORED for TDS purposes .

Upgrade to CAclubindia Pro. Subscribe Now!

Suresh Thiyagarajan (Student) (3986 Points)
Replied 19 September 2019

1. With effect from AY 2019-20 cash withdrawal from the bank in excess of Rs. 1 crore will attract TDS u/s 194N @ the rate of 2% for the amount exceeding Rs. 1 crore. This is applicable for all the assessees.
2. No surcharge will be applicable on the above deduction.
Please correct me if the above solution has an alternative view.