Clarification on applicability of TDS for cash withdrawals above 1 cr
Commissioner of Income tax (media& Technical policy) through press release dated 30.08.2019, clarifies that section 194 N inserted in the Act,is to come into effect from 01.09.2019 and any prior period transaction will not be subject to TDS under said section.However the amendment is with respect to the previous year,calculation of amount of cash withdrawal for triggering deduction under section 194 N of the act shall be counted from first April 2019.
Hence if a person has already with drawn Rs 1 crore or more in cash up to 31.08.2019 from one or more accounts maintained in a banking company, post office or co-op bank or a post office,the 2%TDS will apply on all subsequent cash withdrawals.
press release dt 30.08.19 by Commisioner of Income tax,(media& Technical policy) official spokesperson,CBDT,Dept of Revenue,MOF,GOI