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Dear Customer,

Thank you for banking with us. We would like to update you about Tax Deducted at Source
(TDS) on cash withdrawals in excess of specified limits. The threshold, as well as the Rate of
TDS applicable for cash withdrawal will be dependent on submission of proof of filing of your
Income Tax Return to the bank.

TDS on cash withdrawal will be applicable if:

• The total cash withdrawal across all accounts under your PAN exceeds Rs.20 Lakh* / Rs.1
Crore* in a financial year
• TDS will be charged on the amount withdrawn above Rs.20 Lakh* / Rs.1 Crore*
• The cash withdrawal limit for this financial year will be considered from April 1, 2021
• We will consider all your cash withdrawals at the Primary CRN (Customer Relationship
Number) level
• Rate of TDS will be as under:
Aggregate cash withdrawals in all Income Tax Return copy Income Tax Return copy
accounts in a Financial Year submitted to bank NOT submitted to bank

Upto Rs.20 Lakh Nil Nil

Rs.20 Lakh to Rs.1 Crore Nil 2%**

In excess of Rs.1 Crore 2%** 5%**

The following entities are exempted from TDS on cash withdrawal:

• State and Central Government accounts
• Banking company or co-operative society engaged in carrying on the business of banking
or a post office
• Any white label automated teller machine operator of a banking company or co-operative
society engaged in carrying on the business of banking, in accordance with the
authorization issued by the Reserve Bank of India
• Business correspondent of a banking company or co-operative society engaged in
carrying on the business of banking
• Such other person(s) as the Central Government may notify

In order to avail higher cash withdrawal threshold for TDS, request you to submit
declaration along with ITR –V (Acknowledgement of filing of Income Tax Return)
pertaining to FY 2019-20, FY 2018-19 or FY 2017-18 to the nearest branch.

We request you to provide the declaration and ITR-V as mentioned above if you wish to avail
higher cash withdrawal threshold for TDS failing which lower threshold of Rs.20 Lakh will be
considered and corresponding TDS rate as mentioned in the above table will be applicable on
cash withdrawals above Rs.20 Lakh.

For any assistance, please feel free to visit the nearest Kotak Mahindra Bank branch.

Assuring you of our best services at all times.

Warm regards,
Team Kotak Mahindra Bank

#Income Tax Act,1961 - section 194N

**If PAN is not updated in the account then TDS deduction @ 20% as per section 206AA of the Income Tax Act
will apply. For foreign companies, foreign partnership firms, Non-residents additional surcharge and health &
education cess will be applicable as per Income Tax law.

*Income Tax Section- 194N requires customer to submit Income Tax returns for any of the earlier 3 years. For
example, For FY 21-22, customer will be required to submit ITR either of FY 2019-20, FY 2018-19 or FY 2017-
18.

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