Section 194N

Be Cautious on Cash withdrawals – Budget 2023 – Section 194N 

Income Tax - Section 194N under Income Tax Act have been introduced detailing the provisions of TDS on Cash withdrawals vide union budget 2023...

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TDS Rate Chart for FY 2023-2024 (AY 2024-2025)

Income Tax - TDS Rate Chart for Financial Year (FY) 2023-2024 / Assessment Year (AY) 2024-2025 including Budget 2023 Amendments Tax Deduction at Source (TDS) is one of the important compliances for Income Tax Assessee. There are various sections in Income Tax Law, which specify different TDS rates, nature of payment & its threshold limits for TDS....

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Section 194N – Threshold limit for co-operatives increased to Rs. 3 crore

Income Tax - Section 194N - Threshold limit for co-operatives to withdraw cash without TDS increased to Rs. 3 crore from existing 1 crore with effect from 01.04.2023...

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Section 194N – TDS applicability on Cash Withdrawal in Excess of Rs. 1 Crore

Income Tax - Section 194N is applicable on withdrawals of more than Rs 1 crore from banks/co-operative bank/post office during a financial year. It will apply to the withdrawal of all the sums of money or an aggregate of sums from a particular bank/co-operative bank/post office in a financial year....

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TDS under Section 194N: An Insight

Income Tax - Applicability of TDS under Section 194N: Whenever any Banking Company (within the meaning of Banking Regulation Act, 1949), Cooperative Bank or a post office pays any amount or aggregate of amount as the case may be, in cash exceeding One crore to any person from one or more accounts during previous year, they are liable to deduct TDS equ...

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Govt not intends to withdraw TDS under section 194N

Income Tax - The financial implementation of deduction of tax under section 194N of the Income-tax Act, 1961 in case of primary cooperative societies depends on the quantum of cash withdrawn in excess of specified amount, availability of Permanent Account Number and whether such societies have filed their returns of income for specified assessment yea...

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Raj HC issued notice on constitutional validity of Section 194N

Income Tax - The Rajasthan High Court, Jaipur in the matter of, Abhay Singla v. Union of India, has recently issued notice in a public interest litigation challenging the constitutionality of Section 194N of the Income Tax Act, 1961....

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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 -@ 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 — […]...

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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 Smt@nsitharaman on 23-08-2019, an additional 15% depreciatio...

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Constitutional validity & legality of section 194N challenged before Calcutta HC

Tyroon Tea Company Limited & Anr. Vs Union of India Ors. (Calcutta High Court) - Tyroon Tea Company Limited & Anr. Vs Union of India Ors. (Calcutta High Court) In this writ petition, petitioners have challenged the constitutional validity and legality of section 194N of the Income Tax Act, 1961 which mandates the deduction of tax at source at the rate of 2% on cash withdrawa...

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Calcutta HC restrains TDS deduction under Section 194N

Apeejay Tea Ltd. Anr. Vs Union of India & Ors. (Calcutta High Court) - Apeejay Tea Ltd. Anr. Vs Union of India & Ors. (Calcutta High Court) Calcutta High Court passes landmark interim order in petition challenging constitutional validity of section 194N of the Income Tax Act, 1961 which mandates the deduction of tax at source at the rate of 2% on cash withdrawals f...

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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"

Be Cautious on Cash withdrawals – Budget 2023 – Section 194N 

Section 194N under Income Tax Act have been introduced detailing the provisions of TDS on Cash withdrawals vide union budget 2023...

Read More
Posted Under: Income Tax | ,

TDS Rate Chart for FY 2023-2024 (AY 2024-2025)

TDS Rate Chart for Financial Year (FY) 2023-2024 / Assessment Year (AY) 2024-2025 including Budget 2023 Amendments Tax Deduction at Source (TDS) is one of the important compliances for Income Tax Assessee. There are various sections in Income Tax Law, which specify different TDS rates, nature of payment & its threshold limits for TDS....

Read More
Posted Under: Income Tax | ,

Section 194N – Threshold limit for co-operatives increased to Rs. 3 crore

Section 194N - Threshold limit for co-operatives to withdraw cash without TDS increased to Rs. 3 crore from existing 1 crore with effect from 01.04.2023...

Read More
Posted Under: Income Tax |

Section 194N – TDS applicability on Cash Withdrawal in Excess of Rs. 1 Crore

Section 194N is applicable on withdrawals of more than Rs 1 crore from banks/co-operative bank/post office during a financial year. It will apply to the withdrawal of all the sums of money or an aggregate of sums from a particular bank/co-operative bank/post office in a financial year....

Read More
Posted Under: Income Tax |

TDS under Section 194N: An Insight

Applicability of TDS under Section 194N: Whenever any Banking Company (within the meaning of Banking Regulation Act, 1949), Cooperative Bank or a post office pays any amount or aggregate of amount as the case may be, in cash exceeding One crore to any person from one or more accounts during previous year, they are liable to deduct TDS equ...

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Posted Under: Income Tax |

Discouragement of Cash Transactions under Various Laws in India

In order to curb cash transactions and to move into the digital world, Government of India has introduced Demonetization of old notes of Rs. 500 & Rs. 1000 from 8th November 2016 in order to control the parallel world of black market. Further, Government has also initiated various steps through various laws in India including [&hellip...

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Posted Under: Income Tax | ,

Section 194N TDS Provisions on Cash Transactions

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) a […]...

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Posted Under: Income Tax |

TDS Rate Chart for FY 2022-23 / AY 2023-24 – Updated

Income Tax TDS Rate Chart for for Financial Year (FY) 2022-23 / Assessment Year (AY) 2023-24 The term ‘TDS’ refers to ‘Tax Deduction at source’. It is a mechanism wherein a person responsible to pay a sum of specified nature shall deduct an amount towards TDS and pay it to the credit of Central Government. […]...

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Posted Under: Income Tax | ,

Section 194N: Understanding the intricacies of Cash Withdrawal

Earlier withdrawing cash from the bank was a tedious task and involves a lot of efforts and time. But with the technological advancements, we no longer require to withdraw cash regularly.  And with the ongoing state of Covid-19, UPI & Digital payments took over cash transactions. The Government of India also to boost digital economy ...

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Posted Under: Income Tax |

Govt not intends to withdraw TDS under section 194N

The financial implementation of deduction of tax under section 194N of the Income-tax Act, 1961 in case of primary cooperative societies depends on the quantum of cash withdrawn in excess of specified amount, availability of Permanent Account Number and whether such societies have filed their returns of income for specified assessment yea...

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Posted Under: Income Tax |

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