CBDT has issued a Press Release (on 30.08.2019) clarifying the “Period” and “Amount” to which section 194N will be applicable as under :
(1.) Since section 194N (2% TDS on cash withdrawal exceeding Rs. 1 Crore) is applicable w.e.f. 01.09.2019. Therefore no TDS is to be deducted on cash withdrawal up to 31.08.2019
(2.) However, for the computation of limit of Rs. 1 Crore for triggering TDS, withdrawals w.e.f. 01.04.2019 will be taken into consideration and TDS is to be deducted on withdrawals subsequent to 01.09.2019
Example : Suppose a person has withdrawn cash of Rs. 90 Lakhs till 31.08.2019 and Rs. 12 Lakhs from 01.09.2019 to 31.03.2020, then TDS @2% will be applicable in this case (since total exceeds Rs. 1 Crore) but TDS will be deducted on Rs. 12 Lakhs only (i.e. on cash withdrawals made from 01.09.2019)
COPY OF PRESS RELEASE
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