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Drawings by way of cash, any limits as per IT act.


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

30-Mar-21 00:53

12

Answers (8)

Sec 194N with effect from 01-09 2019 - The limit of Rs 1 crore has to be seen for cash withdrawals made from all branches of a bank @ 2%. If income tax return defaulted for preceding three previous years TDS is 2% on the cash payments/withdrawals of more than Rs 20 lakh and up to Rs 1 crore, and 5% for withdrawal exceeding Rs 1 crore. (Amendment w.e.f 01.07.2020)


sudha reddy

sudha reddy

Moderator

30-Mar-21 10:13

Mam ;Thank you for the replay, but doubt is any sections such as 269ST applies?


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

30-Mar-21 10:34

Mam ;Thank you for the replay, but doubt is any sections such as 269ST applies?

Sec 269ST talks about receiving of money from others... your query was about drawing cash, hence S 194N applies


sudha reddy

sudha reddy

Moderator

30-Mar-21 11:58

And Section 194 N talks about cash withdrawal from banks. Did I say about cash withdrawal from the business?


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Apr-21 12:56

Yes.


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Apr-21 13:25

Proprietor withdraws cash from business ie, cash from the bank and also the physical cash. It comes under the capital account in the balance sheet. If there is any limit regarding the same.


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Apr-21 13:30

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