India , apartment, cash , tds

[siva604]

Hi guys,

     As a part of apartment purchase , some 23.5 lakhs were drawn from my NRE account. I opened this account last year. I received an email about TDS ( 2% above 20 lakhs). So far they collected 7000 Rs as it is 3.5 lakhs over 20 lakhs.

Usually  TDS is  2% above 1 Cr .

In my case they stated that TDS kicked in at 20 lakhs as I did not file IT returns over last 3 yrs.

 

Questions:

1. Anyone ran into this scenario?

2. What are my options?

 

Appreciate your input,

siva

[tom bhayya]

Cash withdrawal exceeding Rs 20 lakh or 1 crore as the case maybe

194N

2.00%

[tom bhayya]

(i) If an individual receiving the money has filed income tax return for any of the three years immediately preceding the year, then TDS to be deducted is an amount equal to 2% of withdrawal sum exceeding one crore rupees

(ii) If an individual receiving the money has not filed income tax return for all the three years, for which the time limit of filing return of income under Section 139(1) has expired, immediately preceding the year, then the TDS is 2% on the cash payments/withdrawals of more than Rs 20 lakh and up to Rs 1 crore, and 5% for withdrawal exceeding Rs 1 crore. (Amendment w.e.f 01.07.2020)

[manamthoupule]

I thought we can transfer from NRE to any Indian account without any TDS. Is the TDS because of cash withdrawal ? Can someone confirm ?