As per Sec 194N of the income tax act, TDS is to be made
-@ 2% if the aggregate cash withdrawal/s exceeds 1 crore – where the ITR is filed for the preceding previous year.
-@ 2%, where withdrawal exceeds Rs.20 lakhs but not Rs.1 crore, @ 5% where withdrawal exceeds Rs. 1 crore — where the ITR is not filed for the preceding previous year.
For determining the ITR filing status, financial institutions were dependent on the documents provided by the assessee/deductee (account holder).
In order the ease the process, CBDT enabled the online mechanism for determining the ITR filing status. Here, department fetches the ITR filing status and provides you with the rate at which TDS is to be made u/s 194N for a given PAN.
Procedure:
- Visit: https://www.incometaxindiaefiling.gov.in/home
- Look for “Verification of applicability u/s 194N” under Quick Links on the left-hand side of the site or directly visit https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/ViewReturnStatusLink.html?lang=eng
- Input PAN and any mobile number for OTP
- Enter the OTP
- Get the TDS rate
In the above sample case, ITR return is filed for preceding PY, so it’s suggesting TDS is to be made @2% if the withdrawal exceeds Rs.1 crore
Looking for Quick link of verification of applicability u/s 194N
Dear sir, Is it any option for bulk verification of cash transaction tax (section 194N) in Income Tax Department
TDS was deducted from my bank account and my cash withdrawals will be less than 1 crore in this FY. Can I get refund of the TDS on filing ITR?. If not what is the procedure to receive refund
TD S was deducted in my case as the cash withdrawal exceeded 20 lakhs, but my total cash withdrawal will be less than 1 crore in the financial year. Can I get refund of the TDS and What is the procedure for it.