Banks must deduct TDS under Section 194N when cash withdrawals from one or more accounts exceed notified limits in a financial year, subject to exceptions.
What account holders should do
- Track cumulative cash withdrawals across accounts
- Check Form 26AS / AIS for 194N entries
- Claim TDS credit when filing ITR
- Plan cash needs to minimise unnecessary TDS
Businesses with heavy cash use should also review TDS compliance and TDS return services.
