To answer your query, can I withdraw 5 lakh cash from bank, I will say yes. You can withdraw Rs 5 lakh in cash from your bank in India. However, there are a few legal, practical, and tax-compliance constraints you must keep in mind.
Under Section 194N of the Income Tax Act, banks must deduct TDS (Tax Deducted at Source) on cash withdrawals from a bank account when the cumulative cash withdrawn in a financial year exceeds certain limits.
If you have filed your income tax returns for the previous three years, the threshold is Rs 1 crore, i.e., only once your total cash withdrawals in a year go above Rs 1 crore, TDS will be applicable.
If you have not filed IT returns for all of the last three assessment years, the lower threshold applies, which is Rs 20 lakh.
Withdrawals above Rs 20 lakh up to Rs 1 crore will attract a 2% TDS.
Even if TDS may not apply, the bank might report it under High-Value Transaction Reporting rules or similar RBI/Income Tax Department norms. You may have to provide your PAN (Permanent Account Number) and identity proof for large cash withdrawals/deposits. I hope you found this information helpful.
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Is It Allowed to Withdraw 5 Lakhs from Bank?
Yes. For a large transaction, there are particular rules and regulations to adhere to. Some private banks have a daily cap of 10 lakh, while others have no limit. You must go through the following points if you plan to withdraw 5 lakhs in a day.- It is necessary to visit your bank\'s home branch for such a huge amount. To withdraw the money, either issue a self-cheque or use a withdrawal slip.
- To guarantee cash availability, especially in smaller branches, notify the bank ahead of time, ideally one to two days.
- Before visiting the bank, you must take your PAN card with you, as it is mandatory for cash withdrawals exceeding Rs.50,000.
- TDS is there if your total cash withdrawals across accounts exceed 20 lakhs in a financial year (3 lakh for non-ITR filers).
Can I Withdraw 5 Lakh Cash From Bank?
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2024-12-30T17:00:50+00:00 2024-12-30T17:00:51+00:00Comment
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