Appendix - 1

VARIOUS SCENARIOS ON TDS DEDUCTION POST AMENDMENTS IN

SECTION 194N APPLICABLE W.E.F. 01.07.2020

The amended provisions of Section 194N are summarized as under:

Sl. Cumulative Cash PAN PAN available PAN

No. Withdrawals during not available in CIF & available &
the Financial Year in CIF Return not Return filed
from 01-04-2020 filed
Scenario: 1 Scenario: 2 Scenario: 3
>20 lacs and
1. up to 1 Cr TDS @ 20% TDS @ 2% No TDS

Recover TDS @ Recover TDS Record IT

Branch Action 20% @ 2% Return filing
Manually Manually status in the
Register
Scenario: 4 Scenario: 5 Scenario: 6
> 1 Cr
TDS @ 20% TDS @ 5% TDS @ 2%
No action. Recover TDS Record IT
@ 3% Return filing
2. Manually status in the
Branch Action Register

Existing
system will Existing
Existing system will take care of system will
take care of TDS @ remaining 2% take care of
20%. TDS TDS @ 2%.

Scenario 1:
Cumulative Cash Withdrawal >20 lacs and up to 1 Cr, where PAN not available
and ITR not filed.

i. Incorporate the transaction details in the Register ( Annexure - D)

ii. Once all details of account holder are filled in the excel utility provided by FRT,
the tax amount to be deducted will be auto calculated

iii. Debit the calculated tax amount manually from the customer account

iv. Credit entry should go to BGL account No. 4899154 along with details.
Scenario2:
Cumulative Cash Withdrawal more than Rs.20 lacs and up to 1 Cr, where PAN
available but ITR not filed

i. Incorporate the transaction details in the Register ( Annexure - D)

ii. Once all details of account holder are filled in the excel utility provided by FRT,
the tax amount to be deducted will be auto calculated

iii. Debit the calculated tax amount manually @2% from the customer account

iv. Credit entry should go to BGL account No. 4899154 along with details.

Scenario3:
Cumulative Cash Withdrawal more than Rs.20 lacs and up to 1 Cr, where PAN
available and ITR filed

i. Incorporate the transaction details in the Register ( Annexure - D)

ii. No need to deduct TDS

Scenario4:
Cumulative Cash Withdrawal more than Rs.1 Crore, where PAN not available and
ITR not filed

i. Incorporate the transaction details in the Register ( Annexure - D)

ii. No need to deduct TDS, applicable TDS @ 20% will be automatically deducted
by CBS

Scenario5:
Cumulative Cash Withdrawal more than Rs.1 Crore, where PAN available but ITR
not filed

i. Incorporate the transaction details in the Register ( Annexure - D)

ii. Once all details of account holder are filled in the excel utility provided by FRT,
the tax amount to be deducted will be auto calculated

iii. Debit the calculated tax amount manually @ 3% from the customer account

iv. Credit entry should go to BGL account No. 4899154 along with details.

Scenario6:
Cumulative Cash Withdrawal more than Rs.1 Crore, where PAN available and
ITR filed

i. Incorporate the transaction details in the Register ( Annexure - D)

ii. No need to deduct TDS, applicable TDS @ 2% will be automatically deducted
by CBS.