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Tax year 2026-27

Section 393(3) Sl. No. 5 TDS: cash withdrawals

Earlier Section 194N · Codes 1064, 1065

From 1 April 2026, TDS on cash withdrawals from bank or post office accounts is deducted under Section 393(3), Table Sl. No. 5, of the Income-tax Act, 2025. It was earlier deducted under Section 194N of the Income-tax Act, 1961.

Calculating TDS under Section 393(3) Sl. No. 5

TDS on cash withdrawals depends on the total withdrawn in the tax year, so it is not a fixed percentage of one withdrawal. The complete TDS rate chart lists every payment.

Section 393(3) Sl. No. 5 at a glance

PaymentNew sectionCodeRateThresholdOld section
Cash withdrawal from bank or post office accounts (recipient other than a co-operative society)393(3) Sl. No. 5.D(b)10652%Above ₹1 crore in the tax year194N
Cash withdrawal from bank or post office accounts (recipient is a co-operative society)393(3) Sl. No. 5.D(a)10642%Above ₹3 crore in the tax year194N

Rate and threshold

TDS is deducted at 2% on cash withdrawals above ₹1 crore in the tax year, under code 1065. Where the recipient is a co-operative society, the limit is ₹3 crore, under code 1064.

Rates are before any surcharge and cess. Lower-deduction certificates, payees without a PAN and other conditions in the Act can change the TDS. This page is a general guide, not tax advice: confirm with your CA or the sources below.

FAQ

Questions, answered

Cash withdrawal from bank or post office accounts (recipient other than a co-operative society): Section 393(3) Sl. No. 5.D(b) (code 1065). Cash withdrawal from bank or post office accounts (recipient is a co-operative society): Section 393(3) Sl. No. 5.D(a) (code 1064). It was earlier Section 194N of the Income-tax Act, 1961.

2%. Rates are before any surcharge and cess.

Cash withdrawal from bank or post office accounts (recipient other than a co-operative society): above ₹1 crore in the tax year; cash withdrawal from bank or post office accounts (recipient is a co-operative society): above ₹3 crore in the tax year.

Other TDS sections

Section 392Codes 1001–1004 · SalaryEarlier Section 192 Section 393(1) Sl. No. 1(i)Code 1005 · Insurance commissionEarlier Section 194D Section 393(1) Sl. No. 1(ii)Code 1006 · Commission and brokerageEarlier Section 194H Section 393(1) Sl. No. 2(i)Form 141 · Rent paid by individualsEarlier Section 194IB Section 393(1) Sl. No. 2(ii)Codes 1008, 1009 · RentEarlier Section 194I Section 393(1) Sl. No. 3(i)Form 141 · Purchase of propertyEarlier Section 194IA Section 393(1) Sl. No. 5Codes 1020–1022 · Interest other than on securitiesEarlier Section 194A Section 393(1) Sl. No. 6(i)Codes 1023, 1024 · ContractorsEarlier Section 194C Section 393(1) Sl. No. 6(ii)Form 141 · Payments by individuals and HUFsEarlier Section 194M Section 393(1) Sl. No. 6(iii)Codes 1026–1028 · Professional and technical feesEarlier Section 194J Section 393(1) Sl. No. 8(ii)Code 1031 · Purchase of goodsEarlier Section 194Q Section 393(1) Sl. No. 8(iv)Codes 1033, 1034 · Business perquisitesEarlier Section 194R Section 393(1) Sl. No. 8(v)Code 1035 · E-commerce operatorsEarlier Section 194O Section 393(3) Sl. No. 7Code 1067 · Payments to partnersEarlier Section 194T

Complete TDS rate chart for tax year 2026-27 →

Section 393 explained →   TDS section codes list →

Sources

Taken only from the Income Tax Department's official publications, as in force on 17 October 2026:

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