I need some information Section 194N: TDS on cash withdrawal.
Am presently constructing a house with home loan. The loan is with Axis bank.
I have another account with SBI and I transfer the loan amount which I receive from Axis bank to SBI, as SBI bank is closer to my home.
I have withdrawn more than 20Lakhs this year and now tax has been deducted for cash withdrawals under Section 194N.
Now this loan amount is not a source of income for me, however tax has been deducted. How and when can I apply for returns of this amount?
Since you are withdrawing more than ₹20 Lakhs from the bank in cash, they have deducted TDS @2% on the same. You can claim the credit of the TDS deducted at the time of filing of Income Tax Return.
You can read more on Section 194N: TDS on Cash Withdrawal.
Thank you very much for the reply.
I need to file the returns next year before the ITR deadline is it or can I file it now?
You need to file the ITR like you normally do next year before the deadline. You will be able to claim the credit of TDS and adjust it against your tax liability.
Hope this clarifies!