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Verification of Applicability u/s 194N

14 Jul    Direct Taxation
Jul 14

Verification of Applicability u/s 194N

CBDT provides utility for banks and post offices to ascertain the TDS applicability rates on cash withdrawals.

Through this utility the banks and post offices will only have to enter PAN of the person who is withdrawing the cash and they will be able to ascertain the TDS applicability rate on cash withdrawals above 20 lakhs in case of non-filers of ITR and that of Rs. 1 Crore in case of filers of ITR.

This functionality has been available as “Verification of Applicability u/s 194N” on incometaxindiaefiling.gov.in since 1st July, 2020.

Section 194N:
A. Where a person does not file income tax return u/s 139(1) for all the three assessment years relevant to the three previous years(Non filer of ITR) and who’s cash withdrawals exceeds during the previous year,
1. Rs. 20 Lakhs to Rs. 1 Crore – TDS rate 2% or
2. Rs. 1 Crore – TDS rate 5%

B. Category of person other than mentioned above(filer of ITR), who’s cash withdrawals exceeds during the previous year,
1. Rs. 1 Crore – TDS rate 2%