Section 194N

TDS implication on cash withdrawals – Section 194N

Income Tax - Q.1 The amended section 194N of Income tax Act, 1961 provides for TDS obligation on cash withdrawals. Which institutions are covered under scheme of this section which has to deduct TDS on certain cash withdrawals? The following persons have to deduct TDS on certain cash withdrawals made by a person holding one or more accounts […]...

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When to Say No to Cash Transaction under Income Tax Act, 1961

Income Tax - A. Income Tax Act, 1961 discourages transactions in cash through several of its provisions. This is done with a view to- counteracting money laundering and tax evasion; encouraging transparent business practices; providing enabling environment for growth of transparent businesses; & easing of auditing and investigations. B. The provis...

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Key Income Tax changes for A.Y 2021-22

Income Tax - Hello readers, Today I will discuss key changes in ITR Forms for A.Y 2021-22 in simplified form- ♦ Regarding changes in ITR-1- ITR-1 cannot be filed in case tax has been deducted u/s 194N Now what is Section 194N-TDS u/s 194N is required to be deducted if amount of cash withdrawn exceeds – Exceeds Rs […]...

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Section 194N TDS on Cash Withdrawals

Income Tax - In Finance Act, 2020 Government came with section  194N ‘Payment of certain amounts in cash’, Applicable from 01st July, 2020, which states that : Every person, being,—  (i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 ...

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Section 194N TDS on cash withdrawal from banks/post offices

Income Tax - 1. Who is responsible to deduct tax u/s 194N? Every person, being,— (i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) a co-operative society engaged in carrying on the business of banking; or (iii) […]...

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New feature in income tax portal – “Check the TDS rate applicability u/s 194N”

Income Tax - As per Sec 194N of the income tax act, TDS is to be made [email protected] 2% if the aggregate cash withdrawal/s exceeds 1 crore – where the ITR is filed for the preceding previous year. [email protected] 2%, where withdrawal exceeds Rs.20 lakhs but not Rs.1 crore, @ 5% where withdrawal exceeds Rs. 1 crore — […]...

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Additional 15% depreciation on Motor Vehicles- No TDS on cash payments by APMCs

Income Tax - Addressing the concerns raised by Agriculture Produce Market Committees (APMCs), it has been decided not to levy the 2% TDS on cash payments above Rs 1 crore made through APMCs, in order to make immediate payments to farmers for their produce. Further to the announcement made by [email protected] on 23-08-2019, an additional 15% depreciatio...

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Section 194N TDS on Cash Withdrawal Not Applicable if Sums withdrawn Not Constitutes Income of Recipient

Tirunelveli District Central Cooperative Bank Limited Vs JCIT- TDS (Madras High Court) - The issue under consideration is whether TDS on Cash Withdrawal u/s 194N is applicable even though the sums withdrawn is not constitute income in the hands of the recipient?...

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TDS on Cash Withdrawal above Rs. 20 lakh

Notification No. SB Order No. 05/2021 - (09/03/2021) - Deduction of TDS in respect of aggregate Cash Withdrawal above Rs. 20 lakh by an account holder of National (Small) Savings Schemes for non ITR filer under section 194N of I.T. Act 1961....

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CBDT clarifies on Validly of section 194N exemptions

Circular No. 14/2020-Income Tax - (20/07/2020) - CBDT clarifies that three Section 194N exemption notifications shall be deemed to be issued under fourth proviso to section 194N as amended by the FA, 2020. ...

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CBDT provides Utility to ascertain TDS Applicability Rates on Cash Withdrawals

Release ID: 1638215 - (12/07/2020) - Income Tax Department has facilitated a new functionality for Banks and Post offices through which they can ascertain the TDS applicability rates on cash withdrawal of above Rs.20 lakh in case of a non-filer of the income-tax return and that of above Rs. 1 Crore in case of a filer of the income-tax ...

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TDS | Cash Withdrawal above Rs. 1 Crore | National Savings Schemes

SB Order No. 02/2020 - (09/01/2020) - Now TDS @2% under section 194N will be applicable on all cash withdrawals above Rs. One Crore taken by an account holder in his/her all type of Small Savings Schemes Accounts /Certificates taken together, from 1.4.2019 onwards....

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CBDT exempts from TDS cash withdraws by Authorised dealer & FFMC

Notification No. 80/2019-Income Tax [S.O. 3719(E)] - (15/10/2019) - CBDT exempts cash withdrawal by the authorised dealer and its franchise agent and sub-agent; and Full-Fledged Money Changer (FFMC) licensed by the Reserve Bank of India and its franchise agent from TDS under Section 194N subject to conditions specified in Notification No. 80/2019-Income Tax dated 15...

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Recent Posts in "Section 194N"

TDS implication on cash withdrawals – Section 194N

Q.1 The amended section 194N of Income tax Act, 1961 provides for TDS obligation on cash withdrawals. Which institutions are covered under scheme of this section which has to deduct TDS on certain cash withdrawals? The following persons have to deduct TDS on certain cash withdrawals made by a person holding one or more accounts […]...

Read More
Posted Under: Income Tax |

When to Say No to Cash Transaction under Income Tax Act, 1961

A. Income Tax Act, 1961 discourages transactions in cash through several of its provisions. This is done with a view to- counteracting money laundering and tax evasion; encouraging transparent business practices; providing enabling environment for growth of transparent businesses; & easing of auditing and investigations. B. The provis...

Read More
Posted Under: Income Tax | ,

Key Income Tax changes for A.Y 2021-22

Hello readers, Today I will discuss key changes in ITR Forms for A.Y 2021-22 in simplified form- ♦ Regarding changes in ITR-1- ITR-1 cannot be filed in case tax has been deducted u/s 194N Now what is Section 194N-TDS u/s 194N is required to be deducted if amount of cash withdrawn exceeds – Exceeds Rs […]...

Read More
Posted Under: Income Tax |

Section 194N TDS on Cash Withdrawals

In Finance Act, 2020 Government came with section  194N ‘Payment of certain amounts in cash’, Applicable from 01st July, 2020, which states that : Every person, being,—  (i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 ...

Read More
Posted Under: Income Tax |

TDS on Cash Withdrawal above Rs. 20 lakh

Notification No. SB Order No. 05/2021 09/03/2021

Deduction of TDS in respect of aggregate Cash Withdrawal above Rs. 20 lakh by an account holder of National (Small) Savings Schemes for non ITR filer under section 194N of I.T. Act 1961....

Read More

New feature in income tax portal – “Check the TDS rate applicability u/s 194N”

As per Sec 194N of the income tax act, TDS is to be made [email protected] 2% if the aggregate cash withdrawal/s exceeds 1 crore – where the ITR is filed for the preceding previous year. [email protected] 2%, where withdrawal exceeds Rs.20 lakhs but not Rs.1 crore, @ 5% where withdrawal exceeds Rs. 1 crore — […]...

Read More
Posted Under: Income Tax |

Section 194N TDS on cash withdrawal from banks/post offices

1. Who is responsible to deduct tax u/s 194N? Every person, being,— (i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) a co-operative society engaged in carrying on the business of banking; or (iii) […]...

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Posted Under: Income Tax |

Amendment under Section 194N with effect from 1st July, 2020  

Section 194N is pertaining to Tax Deducted At Source for withdrawal Cash by any person from, a banking company to which Banking Regulation Act 1949 applies, a cooperative society engaged in carrying on the business of banking; or a post office who is responsible for any sum, being the amount or the aggregate of amounts, […]...

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Posted Under: Income Tax |

Section 194N TDS Provisions on Cash Transactions

Tax Deducted At Source Provisions on Cash Transactions Section 194N – TDS on cash withdrawal from banks/post offices [Applicable from September 1, 2019] Who is responsible to deduct tax u/s 194N? Every person, being,— (i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking in...

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Posted Under: Income Tax |

Section 194N TDS on Cash Withdrawal Not Applicable if Sums withdrawn Not Constitutes Income of Recipient

Tirunelveli District Central Cooperative Bank Limited Vs JCIT- TDS (Madras High Court)

The issue under consideration is whether TDS on Cash Withdrawal u/s 194N is applicable even though the sums withdrawn is not constitute income in the hands of the recipient?...

Read More

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