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    Question

    Which section deals with TDS on cash

    withdrawals?
    A Section 194A Correct Answer Incorrect Answer
    B Section 194A Correct Answer Incorrect Answer
    C Section 194D Correct Answer Incorrect Answer
    D Section 194N Correct Answer Incorrect Answer

    Solution

    Section 194N provides that every person, being a banking company to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred under section 51 of that Act) a co-operative society engaged in carrying on the business of banking or a post office who is responsible for paying any sum, being the amount or aggregate of amounts, as the case may be, in cash exceeding 1 crore during the previous year, to any person from one or more accounts maintained by such recipient-person with it, shall deduct tax at source @2% of such sum.

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