Compute bank TDS on cash withdrawals for regular ITR filers (threshold ₹1 Crore) vs non-filers (thresholds ₹20 Lakhs & ₹1 Crore).
Deducted directly by the branch at withdrawal counter.
To discourage large cash transactions and foster a digital economy, Section 194N was introduced to levy Tax Deducted at Source (TDS) on aggregate cash withdrawals made by any person from their bank accounts during a financial year.
For taxpayers who have filed their income tax returns for any of the last 3 financial years:
• Up to ₹1 Crore: 0% TDS (No deduction).
• Exceeding ₹1 Crore: 2% TDS on the amount exceeding ₹1 Crore.
• Co-operative Societies: Threshold is enhanced to ₹3 Crores.
For taxpayers who have NOT filed ITR for all 3 preceding assessment years:
• Up to ₹20 Lakhs: 0% TDS.
• ₹20 Lakhs to ₹1 Crore: 2% TDS on amount exceeding ₹20 Lakhs.
• Exceeding ₹1 Crore: 5% TDS on amount exceeding ₹1 Crore.
| Cash Withdrawal Range | Regular ITR Filers | Non-ITR Filers (All 3 Yrs) | Co-operative Societies |
|---|---|---|---|
| Up to ₹20 Lakhs | Nil (0%) | Nil (0%) | Nil (0%) |
| ₹20 Lakhs to ₹1 Crore | Nil (0%) | 2% on amount > ₹20L | Nil (0%) |
| ₹1 Crore to ₹3 Crores | 2% on amount > ₹1Cr | 5% on amount > ₹1Cr | Nil (0%) |
| Above ₹3 Crores | 2% on amount > ₹1Cr | 5% on amount > ₹1Cr | 2% on amount > ₹3Cr |
Section 194N TDS is NOT an additional income tax. It reflects in your Form 26AS / AIS and can be adjusted against your total income tax liability or claimed as a refund when filing your annual ITR.
Yes. All cash withdrawals across bank branches, ATMs, cheque encashments, and business correspondent points linked to your PAN under the same bank are aggregated.
Central/State Government, banking companies, co-operative banks, post offices, authorized money changers, and White Label ATM operators are 100% exempt from Section 194N TDS.