📌 Key Takeaway: Comprehensive guide to Section 194N TDS on cash withdrawals exceeding ₹20 Lakhs / ₹1 Crore, exemptions for APMC traders, and claiming TDS in ITR.
What is Section 194N TDS?
Section 194N mandates banks, cooperative banks, and post offices to deduct Tax Deducted at Source (TDS) on cash withdrawals exceeding specified annual limits.
Applicable TDS Rates and Thresholds
- Regular ITR Filers (Filed returns in past 3 years): 2% TDS on cash withdrawals exceeding ₹1 Crore in a financial year.
- Non-Filers (Failed to file ITR in preceding 3 years): 2% TDS on withdrawals between ₹20 Lakhs and ₹1 Crore; 5% TDS on withdrawals exceeding ₹1 Crore.
- Claiming Credit: TDS deducted is credited to Form 26AS and fully refundable while filing annual ITR.