Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
As per the provisions of Income Tax Act 1961, Banks are required to deduct TDS @ 2% from the aggregate cash withdrawals exceeding Rs 1 Crore made during a Financial Year (FY), from one or more accounts, maintained by a customer under the same PAN.
As per amendments made in the Section 194N, via Finance bill, 2020, TDS will be deducted as below as per the below mentioned rates:
- @ 2% from the aggregate cash withdrawals exceeding Rs 20 lacs and @ 5% from the aggregate cash withdrawals exceeding Rs 1 crore in case the customer has not filed his Income Tax returns for three Assessment Years relevant to 3 Previous Years immediately preceding the previous year in which the payment of the sum is made to him. This amendment is effective from 01st July’2020.
- @20% from the aggregate cash withdrawals exceeding Rs 20 lacs, in case the PAN number is not updated in the account.
In case you want to claim exemption from (TDS) on aggregate cash withdrawals in excess of Rs 20 lacs in a FY, you need to submit the TDS Exemption form to your bank in the format provided in the links given below or any other format provided by your bank.
If you are not entitled to any exemption as mentioned above the you are required to submit a declaration confirming filing of Income tax returns in the format given in the below link.
If the bank doesn’t receive the TDS Exemption form along with supporting documents /Declaration then you will not be entitled for any exemption and TDS will be deducted as per provision of Section 194N of the Income Tax Act, 1961.
Also, kindly note that the TDS Exemption / Declaration form submitted will be valid for ONE Financial Year only, If you want to claim the benefit in the subsequent Financial Years (FY) , a fresh declaration will have to be submitted for each Financial Year separately.