Section 194N

Section 194N – TDS on cash withdrawal

Income Tax - Summary -The Union Budget 2019 has introduced Section 194N for tax deduction at source (TDS) on cash withdrawals exceeding Rs 1 crore. -The Budget 2020 has reduced the threshold limit for TDS to Rs 20 lakh for taxpayers who have not filed their income tax returns for past three years. -Why is Section 194N- To […]...

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Brief Provision regarding Cash Transaction under Income Tax

Income Tax - After the demonetization of currency, the government was aiming to regularize the cash transaction and therefore they have come with various provisions to discourage such transactions. Following are various provision brought to Income tax law 1961 and other laws in simple language – 1. SECTION 40A(3) – Payment or aggregate of paym...

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Section 194N: TDS on Heavy Cash Withdrawal from Banks/ Post Offices

Income Tax - With the amendment in Finance Act, 2020 section 194N was amended by substituting 83A which imposes 2% TDS on withdrawal of sum exceeding Rs. 1 crore. This section has came into effect from 1 st July 2020. Every person including – (i) Individuals (ii) HUF (iii) Company (iv) Partnership firms or LLP (v) Local authorities […]...

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Section 194N: TDS on Cash withdrawal in excess on INR 1 Crore

Income Tax - Section 194N: TDS on Cash withdrawal in excess on INR 1 Crore This section applies to any Banking Company, Co-operative Society or Post office who is responsible to pay any sum being amount or aggregate of amounts, in cash, in excess of INR 1 Crore during the Previous Year to any person from one or […]...

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Stay to petitioner to not to deduct TDS u/s 194N till 30.09.2021

Income Tax - The Hon’ble Calcutta High Court in the matter Apeejay Tea Ltd. Anr. Vs Union of India & Ors. (Calcutta High Court) has given an interim order dated 08th July, 2021 regarding restraining the respondent’s authorities concerned from deducting tax on source on the basis of the aforesaid provisions of Section 194N till 30th September,...

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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 [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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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"

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...

Read More
Posted Under: Income Tax |

Raj HC issued notice on constitutional validity of Section 194N

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....

Read More
Posted Under: Income Tax |

Section 194N – TDS on cash withdrawal

Summary -The Union Budget 2019 has introduced Section 194N for tax deduction at source (TDS) on cash withdrawals exceeding Rs 1 crore. -The Budget 2020 has reduced the threshold limit for TDS to Rs 20 lakh for taxpayers who have not filed their income tax returns for past three years. -Why is Section 194N- To […]...

Read More
Posted Under: Income Tax |

Brief Provision regarding Cash Transaction under Income Tax

After the demonetization of currency, the government was aiming to regularize the cash transaction and therefore they have come with various provisions to discourage such transactions. Following are various provision brought to Income tax law 1961 and other laws in simple language – 1. SECTION 40A(3) – Payment or aggregate of paym...

Read More
Posted Under: Income Tax |

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 withdrawals from, inter alia, a […]...

Read More

Section 194N: TDS on Heavy Cash Withdrawal from Banks/ Post Offices

With the amendment in Finance Act, 2020 section 194N was amended by substituting 83A which imposes 2% TDS on withdrawal of sum exceeding Rs. 1 crore. This section has came into effect from 1 st July 2020. Every person including – (i) Individuals (ii) HUF (iii) Company (iv) Partnership firms or LLP (v) Local authorities […]...

Read More
Posted Under: Income Tax |

Section 194N: TDS on Cash withdrawal in excess on INR 1 Crore

Section 194N: TDS on Cash withdrawal in excess on INR 1 Crore This section applies to any Banking Company, Co-operative Society or Post office who is responsible to pay any sum being amount or aggregate of amounts, in cash, in excess of INR 1 Crore during the Previous Year to any person from one or […]...

Read More
Posted Under: Income Tax |

Stay to petitioner to not to deduct TDS u/s 194N till 30.09.2021

The Hon’ble Calcutta High Court in the matter Apeejay Tea Ltd. Anr. Vs Union of India & Ors. (Calcutta High Court) has given an interim order dated 08th July, 2021 regarding restraining the respondent’s authorities concerned from deducting tax on source on the basis of the aforesaid provisions of Section 194N till 30th September,...

Read More
Posted Under: Income Tax |

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

1. Who is responsible to deduct tax under section 194N of Income Tax Act, 1961? 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 […]...

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Posted Under: Income Tax |

TDS under Section 194N

(1) Every banking company  (2) cooperative bank; or (3)  post office, who is responsible for paying  any amount in cash the  aggregate of which is exceeding Rs. 1 crore during the previous year from one or more accounts maintained by the recipient with it shall at the time of payment of such sum deduct an amount equal to […]...

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Posted Under: Income Tax |

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