So what is the limit for those who do not file ITR
If you have multiple accounts in different banks
Keep in mind that the threshold limit of Rs 20 lakh and Rs 1 crore is for cash withdrawals made within 1 financial year inclusive of all accounts of anyone bank/co-operative bank/post office. Therefore, for those who file ITR, if they have accounts in more than one bank/post office / co-operative bank, then they can do cash transactions of more than 1 crore in a financial year from each bank/post office / co-operative bank without 2% TDS can be made. For example, if someone has three accounts in three different banks, then he can withdraw cash from each bank up to Rs 1 crore i.e. a total of Rs 3 crore in a financial year without tax deduction. Similarly, non-ITR filer Also, every bank/post office / co-operative bank can do cash transactions of more than Rs 20 lakh in a financial year without TDS of 2 percent.
There is no other payment mode other than cash.
A provision of 2 percent TDS has been made under section 194N on cash withdrawals of more than Rs 20 lakh / Rs 1 crore in a financial year. Make it clear that TDS above this threshold limit will be deducted only on those transactions where cash is withdrawn. If someone has taken payment from the bank by check or draft or digital/electronic mode, then TDS will not be deducted because the payment was not done in cash.
Will the entire amount be taxed if the limit is crossed?
1 crore limit does not apply to these
Under section 194N, certain categories are exempted from TDS of 2 percent for cash withdrawal from the account even after crossing the annual limit of Rs 1 crore. These categories include business correspondents of a government entity, bank, co-operative society, post office, banking company or co-operative society, white-label ATM operator of a bank, and persons notified by the government and RBI.