| Dear Customer, |
| We hope this email finds you well. |
| We would like to update you about TDS on cash withdrawals in excess of specified limits. The threshold as well as rate of TDS applicable for cash withdrawals will be dependent on submission of proof of filing of your Income Tax Returns to the bank. |
| TDS on cash withdrawal will be applicable if: |
| • | The total cash withdrawal across all accounts under your PAN exceeds Rs. 20 Lakhs * or Rs. 1 Crore * in a financial year. | | • | TDS will be charged on the amount withdrawn above Rs. 20 Lakhs * or Rs. 1 Crore *. | | • | The cash withdrawal limit for this financial year will be considered from April 1, 2022. | | • | We will consider all your cash withdrawals at the Primary CRN (Customer Relationship Number) level. | | • | Rate of TDS will be as under: | | | | Aggregate cash withdrawals in all accounts in a Financial Year | Income Tax Return copy submitted to the Bank | Income Tax Return copy NOT Submitted to the Bank | | Up to Rs. 20 Lakhs | Nil | Nil | | Rs. 20 Lakhs to Rs. 1 Crore | Nil | 2% @ | | In excess of Rs. 1 Crore | 2% @ | 5% @ | | |
| The following entities are exempted from TDS on cash withdrawal: |
| • | State and Central Government accounts. | | • | A banking company or a co-operative society engaged in carrying on the business of banking or a post office. | | • | Any white label Automated Teller Machine operator of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the authorisation issued by the Reserve Bank of India. | | • | Business Correspondent of a banking company or a co-operative society engaged in carrying on the business of banking. | | • | Such other person(s) as the Central Government may notify. | |
| In order to avail higher cash withdrawal threshold for TDS, request you to submit attached declaration along with ITR–V (Acknowledgement of filing of Income Tax Returns pertaining to FY 2020-21, 2019-20 or FY 2018-19) to the nearest branch. |
| We request you to provide the declaration and ITR-V as mentioned above, if you wish to avail higher cash withdrawal threshold for TDS, failing which, lower threshold of Rs. 20 Lakhs will be considered and corresponding TDS rate as mentioned in the above table will be applicable on cash withdrawals above Rs. 20 Lakhs. |
| For any assistance, please feel free to visit your nearest Kotak Mahindra Bank branch. |
| Thank you for banking with us. Assuring you of our best services at all times. |
Warm regards,
Team Kotak Mahindra Bank |
# Income Tax Act,1961 - section 194N
@If PAN is not updated in the account then TDS deduction @ 20% as per section 206AA of the Income Tax Act will apply. For foreign companies, foreign partnership firms and non-residents, additional surcharge and health & education cess will be applicable as per Income Tax law.
*Income Tax Section- 194N requires customer to submit Income Tax Returns for any of the earlier 3 years. For example, For FY 22-23, customer will be required to submit ITR either of FY 2020-21, 2019-20 or FY 2018-19. |
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