You can get credit for TDS deducted on cash withdrawals of over Rs 1 crore from bank account- The Economic Times

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  • Last Updated on 28 October, 2020

October 10, 2019 Naveen Wadhwa, Deputy General Manager at Taxmann.com, said:

“The provisions of Rule 37BA allow a deductee to pass on the credit of tax deducted to next year or to another person. Such option shall not be available in the case of tax deducted under Section 194N. The CBDT has clarified that the credit for tax deducted at source under section 194N shall be available to the deductee only. Further, the credit shall be allowed in the year of deduction itself. Deductee shall not be allowed to carry forward the TDS credit to subsequent assessment years. This option has been withdrawn in case of Section 194N TDS as the amount of cash withdrawal on which tax is deducted cannot be classified as income and the sole purpose behind such provision is to discourage cash transactions and to get trails of such transactions. The details of such TDS deducted in the year will also reflect in the individual’s Form 26AS.”

Read the full article here: You can get credit for TDS deducted on cash withdrawals, Taxmann

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