Calculate TDS on large cash withdrawals with the Section 194N Cash Withdrawal TDS Calculator. For Tax Year 2026–27, check Section 393(3), the ₹1 crore or ₹3 crore threshold, 2% TDS rate and applicable exceptions.
Use this Section 194N Cash Withdrawal TDS Calculator to estimate TDS on large cash withdrawals in India. For Tax Year 2026–27, the governing provision is Section 393(3), Table Serial No. 5, of the Income-tax Act, 2025, which replaced the old Section 194N framework from 1 April 2026. The Income Tax Department confirms that the Income-tax Act, 1961 stands repealed from that date, while earlier tax years continue under the old Act. Income Tax Department's transition guidance.
This calculator checks TDS on aggregate cash payments from one or more accounts during the tax year. It suits individuals, businesses, finance teams, CAs, accountants and company secretaries handling large cash withdrawals.
For Tax Year 2026–27, use Section 393(3) rather than Section 194N for a transaction covered by the new Act. The Section 194N name remains relevant when you search older transactions or compare the old and new provisions.
The official Section 393(3) rule applies TDS to the entire amount when the aggregate amount exceeds the applicable threshold. The rate for this cash-payment category is 2%. Section 393 of the Income-tax Act, 2025.
For a recipient other than a co-operative society:
Threshold = ₹1,00,00,000
If aggregate cash withdrawal ≤ ₹1,00,00,000:
TDS = ₹0
If aggregate cash withdrawal > ₹1,00,00,000:
TDS = Aggregate cash withdrawal × 2%
For a recipient that is a co-operative society:
Threshold = ₹3,00,00,000
If aggregate cash withdrawal ≤ ₹3,00,00,000:
TDS = ₹0
If aggregate cash withdrawal > ₹3,00,00,000:
TDS = Aggregate cash withdrawal × 2%
Section 393(3)(a) uses the entire amount once the threshold is crossed. You don't calculate 2% only on the excess above ₹1 crore or ₹3 crore. The provision covers cash paid from one or more accounts maintained by the recipient. Official Section 393 text.
Section 393(4), Table Serial No. 18, lists no-deduction cases for specified payments, including payments to the Government, banking companies, eligible co-operative banks, post offices, eligible business correspondents and eligible white-label ATM operators. The calculator includes a selector for these specified exceptions. Section 393 no-deduction table.
Use the full tax-year aggregate. Don't enter only the amount that pushed the running total above the threshold.
Suresh has aggregate cash withdrawals of ₹1,20,00,000 during Tax Year 2026–27. The payment is covered by the ordinary rule, and no Section 393(4) exception applies.
The threshold for a recipient other than a co-operative society is ₹1 crore. Suresh has crossed it.
Aggregate cash withdrawal = ₹1,20,00,000
Threshold = ₹1,00,00,000
TDS rate = 2%
TDS = ₹1,20,00,000 × 2%
= ₹2,40,000
Suresh's estimated TDS is ₹2,40,000. The calculation uses the full ₹1.20 crore, not only the ₹20 lakh excess. Section 393(3), Table Serial No. 5.
For a co-operative society, the threshold is ₹3 crore. Priya has aggregate covered cash payments of ₹3,20,00,000 and no Section 393(4) exception applies.
₹3,20,00,000 × 2% = ₹6,40,000
Priya's estimated TDS is ₹6,40,000 because the aggregate amount exceeds ₹3 crore. Section 393(3), Table Serial No. 5.
If your amount is close to a threshold, reconcile the withdrawals across relevant accounts before deciding that TDS does not apply.
The governing law changed on 1 April 2026. The Income Tax Department states that the Income-tax Act, 1961 stands repealed from that date under Section 536 of the Income-tax Act, 2025. The new Act uses tax year terminology instead of the earlier previous-year/assessment-year structure. Income Tax Department's New Act FAQ.
For Tax Year 2026–27, the cash-withdrawal TDS provision is Section 393(3), Table Serial No. 5. It specifies a 2% rate, a ₹1 crore threshold for a recipient other than a co-operative society, and a ₹3 crore threshold for a recipient that is a co-operative society. Official Section 393 text.
The old Section 194N rule remains relevant to tax years governed by the 1961 Act. Under that provision, the standard threshold was ₹1 crore with 2% TDS, while specified non-filers faced a ₹20 lakh threshold with 2% up to ₹1 crore and 5% above ₹1 crore. Official Section 194N text. The new Section 393(3) table does not carry those old non-filer slabs into the current cash-withdrawal formula.
The Income Tax Department says provisions of the repealed 1961 Act continue for tax years beginning before 1 April 2026. Don't apply the new Section 393 reference to an old-year transaction without checking the applicable transition rule. Official transition guidance.
Section 393(4), Table Serial No. 18, excludes specified payments from TDS under this cash-payment provision. The listed categories include the Government, banking companies, co-operative societies engaged in banking, post offices, eligible business correspondents and eligible white-label ATM operators. Official no-deduction table.
Section 194N belongs to the Income-tax Act, 1961, which was repealed from 1 April 2026. For Tax Year 2026–27, the cash-withdrawal TDS provision is Section 393(3), Table Serial No. 5 of the Income-tax Act, 2025. Section 194N remains relevant for transactions governed by the old Act. Transition guidance.
The current Section 393(3), Table Serial No. 5 rate is 2% after the threshold is exceeded. The threshold is ₹1 crore for a recipient other than a co-operative society and ₹3 crore for a co-operative society. The 2% rate applies to the entire amount once the threshold is crossed. Section 393 text.
No. Section 393(3)(a) requires deduction on the entire amount when the amount or aggregate amount exceeds the threshold. A covered ₹1.20 crore withdrawal therefore gives a basic TDS calculation of ₹1.20 crore × 2% = ₹2.40 lakh. Official Section 393 text.
The current threshold is ₹3 crore when the recipient is a co-operative society. If covered aggregate cash payments exceed ₹3 crore, Section 393(3), Table Serial No. 5 applies 2% to the entire amount. Use this threshold only when the recipient qualifies as a co-operative society. Official Section 393 text.
Yes. Table Serial No. 5 covers a sum paid in cash from one or more accounts maintained by the recipient. Use the relevant aggregate rather than checking only the largest withdrawal. Keep account-wise records when the running total approaches the applicable ₹1 crore or ₹3 crore threshold. Official Section 393 text.
The ₹20 lakh threshold belonged to the older Section 194N rule for specified non-filers. Under that rule, 2% applied above ₹20 lakh up to ₹1 crore, and 5% applied above ₹1 crore. The current Section 393(3) table uses 2% with ₹1 crore or ₹3 crore thresholds instead. Official Section 194N text.
No. Toolisky is an independent calculator site. This tool uses the published Income-tax Act, 2025 text for Tax Year 2026–27. It provides an estimate, not an official TDS filing or certificate. Check the transaction against current law and any applicable Section 393(4) exception before deducting TDS.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
For informational purposes only. Results are estimates based on the inputs you provide and the rules in effect for the period shown, and are not tax, legal or financial advice. Verify figures against the relevant official source and consult a qualified professional before acting on them. Accuracy & limitations
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