Question ID :
40769
TDS on cash withdrawl
A cooperative Society is dealing in providing fertilizers/essential goods etc to its members . It has withdrawn cash in excess of 1 crore in financial year 2019-20
Whether TDS @2% is necessarily to be deducted by bank or
certificate from Income tax department will work here for non deduction/Lower deduction etc
Posted by
Mahesh Kumar
on
Aug 12, 2020
Filed Under
DIRECT TAXES
Please read Section 194N of Income Tax Act, 1961
As per above section, Payer is required to deduct TDS on cash withdrawal of the amount of more than 1 crore in a financial year.
But, The above section is not applicable to the payee, being A bank or co-operative society engaged in the business of banking or a post office.
Hence, If the above cooperative society is not in the business of banking, so the above section is applicable to the deductor Bank.
Posted by
CA ANUJ JAISWAL on
Aug 13, 2020
Answer ID :
80676
Yes. Bank will deduct TDs under section 194N for cash withdrawal by cooperative society as it is not engaged in banking business. TDS certificate for non-deduction/ lower deduction will not be submitted for the purpose of provisions of section 194N.
Posted by
CA. chunauti dholakia on
Aug 13, 2020
Answer ID :
80678
YES, SECTION 194N APPLICABLE ON COOPERATIVE SOCITIES TOO. BANK WILL AUTOMATICALLY DEDUCT TDS WHEN WITHDRAWLS CROSSES RS. 1 CRORE.
Posted by
SHUBHAM SONI on
Aug 14, 2020