01 February, 2023

Threshold limit for cash withdrawal increased for Co-operatives - Budget 2023

 


According to section 194N of the Act, TDS has to be deducted if the aggregate sum of cash withdrawn by a person in FY exceeds Rs. 1 Crores. (This limit is 20 lakhs in case no ITR has been filed for all three previous AYs).

TDS will be deducted at 2% of cash withdrawn in excess of the limit(Rs. 1 Crores / Rs. 20 Lakhs) as stated above.

Relaxation has been provided to co-operatives with respect to the amount of cash that may be withdrawn with TDS being deducted.


This limit is enhanced to Rs. 3 Crores to Co-operatives. Now, Co-operatives may withdraw cash upto Rs. 3 Crores in a Financial Year without TDS being deducted.





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