Today in this Guide We are learning about TDS on Cash Withdrawal Refund Process. So if you are withdrawing more cash from your bank then as per Income tax guidelines banks deduct the TDS from your cash withdrawal and deposit against your pan card to the government.

But the good thing during the Filing of your Income tax return you can claim TDS Refund on Cash Withdrawal from the Bank.

TDS Rate on the Cash Withdrawal from the Bank ?

TDS will be deducted at 2% Rate when you withdraw the cash excess of 1 Crore rupees in a financial year from the bank & submitted all last 3 year income tax returns to the bank.

But if you have not filed your income tax return & withdraw more than 20 lakh rupees in a financial year then 2% TDS will be deducted by the Bank.

Plus if you withdraw more than 1 Crore rupees if not filed the income tax return then 5% TDS is applicable by the bank.

Section for Cash withdrawal from Bank ?

Under 194N Section TDS on Cash Withdrawal is applicable where bank deduct the TDS Amount and deposit against your pan card.

For ex – if you withdraw 25 lakh rupees in a year & not file the income tax return in last 3 year then bank will be deducted 2% TDS i.e = [2500000-2000000] = 500000*2% = 10000/-INR TDS deducted by bank and deposit against your pan card.

TDS on Cash Withdrawal Refund Process –

During the ITR Filing you need to claim your TDS on Cash withdrawal. First you need to Verify your Form 26AS where you can clearly show Cash Withdrawal TDS Amount reflected if deposited by bank to the government.

After that in the Income tax return you are not required to show Cash withdrawal as Income but you need to Claim TDS under the Tax Paid Schedule of the ITR.

So if your tax liability is more than TDS then it’s automatically set off against the liability but if your liability is less. Then you will get 100% TDS Refund Amount on Cash Withdrawal. 

For Income tax Return Filing We Highly Recommend Contact to MyOnlineCA ITR Filing Service where Tax Expert Helps you to claim your Whole 100% TDS Refund on Cash Withdrawal from the Bank.

Now Let’s solve some FAQ on TDS on Cash Withdrawal Refund Process.

a) TDS on Cash withdrawal from bank is refundable or not

Yes its refundable but for that you need to file an income tax return where myonlineca can easily help you.

b) How to Claim TDS Refund on Cash Withdrawal 

You need to file ITR-1,2,3,4 Form every year to claim your TDS Refund through the official income tax website but you need to hire a tax expert for proper tax computation.

c) Can I claim all last year TDS Refund on Cash withdrawal if I forget to file the ITR ?

If you missed the deadline to file Income tax return then sorry its not possible to claim last year all TDS Refund. Every year 31st july is the last due date for itr filing. For more info you can consult with myonlineca.

So Hope now your all doubts have been cleared regarding the TDS Refund on Cash Withdrawal.