TDS on Cash Withdrawals From 1 April 2026: Section 393(3) Replaces 194N, the Rs 20 Lakh Non-Filer Tier Is Gone, and the New Text Says "Entire Amount"
From 1 April 2026 the bank deducts 2% on cash withdrawals above Rs 1 crore (Rs 3 crore for a co-operative society) under section 393(3) of the Income-tax Act, 2025. Two things changed that most bank FAQs have not caught: the old non-filer tier is not in the new Act, and the new text says the deduction is "on the entire amount".
Mrunmai Madaye
@mrunmai1995
I cover personal finance and the government small-savings schemes here — PPF, the Sukanya Samriddhi Yojana, NSC, the Senior Citizens' Savings Scheme and Kisan Vikas Patra. I start from the notified scheme rules as published in the Gazette rather than from bank marketing pages, and I go after the parts households most often get wrong: how interest is actually calculated month to month, what happens when a deposit misses its cycle, what premature closure really costs, and how the tax treatment shifts from one scheme to the next. My rate tables carry the date I checked them, because the Finance Ministry resets those every quarter.