TDS Section 194N — Cash withdrawal from bank/post office
FY 2025-26 · Rate 2% (or 5% if non-filer of ITR)
What does this section cover?
TDS on aggregate cash withdrawal from bank or post office above the annual threshold.
Why this section: Discourages large cash economy — banks deduct 2% on cumulative cash withdrawals above ₹1 crore per FY (₹20L for ITR non-filers).
Key facts
- Threshold
- ₹1,00,00,000 per FY (₹20 lakh if non-filer of last 3 ITRs)
- Applicable for
- FY 2025-26
- Who deducts
- Bank / cooperative bank / post office
- Paid to
- Account holder (any person)
- Statutory source
- Section 194N, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 194N is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.
Related TDS sections
Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.
Need a different section?
Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.