No Sec. 194N TDS on Cash Withdrawal by Foreign Representations Approved by Ministry of External Affairs | CBDT

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  • Last Updated on 30 November, 2024

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Section 194N TDS

Notification No. 123/2024, dated 28-11-2024

Section 194N of the Income Tax Act, 1961 casts a liability on Every bank, co-operative bank or post office to deduct tax at source from any sum paid in cash from one or more accounts maintained by the recipient if cash is withdrawn above the threshold limit from any bank account (saving or current bank account). The tax is required to be deducted at the rate of 2% if the cash withdrawal exceeds Rs. 1 crore (Rs. 3 crores where the recipient is a co-operative society) during the previous year.

To exempt from the provisions of section 194N, the Central Board of Direct Taxes (CBDT) has issued a notification specifying that the provisions of section 194N shall not apply to Foreign Representations duly approved by the Ministry of External Affairs of the Government of India, including Diplomatic Missions, agencies of the United Nations, International Organizations, Consulates and Offices of Honorary Consuls which are exempt from paying taxes in India.

The notification shall be deemed to have come into force with effect from the 1st day of December, 2024.

Click Here To Read The Full Notification

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