TDS On Cash Withdrawal From Bank (Section 194N)
TDS On Cash Withdrawal From Bank (Section 194N) The Union Budget, 2020 amended Section 194N related to TDS on cash withdrawal from savings/current bank account. The objective of inserting this provision was to eliminate large cash withdrawals from bank accounts and phasing out black money from India . Section 194N Provision As per this amended Section, if an assessee has not filed Income Tax Return (ITR) for the last three financial years , then cash withdrawal from his/her savings or current bank account will attract TDS if the total amount withdrawn in a financial year exceeds Rs 20 lakh / Rs. 1 crore, as the case may be. Earlier, through the Union Budget of 2019, Section 194-N was inserted for TDS on cash withdrawal of amounts exceeding the limit of Rs. 1 crore. In the budget of 2020, this limit of Rs. 1 crore was decreased to Rs. 20 lakhs. Applicability Of Section 194-N The newly amended Section 194N came into force on 1st July ...