A co-operative bank has provided, the followings information relating to cash withdrawals by its two customers during the F.Y.·-2024-25: Date of…

(ii) Since Mr. A has regularly filed his return of income, the co-operative bank is required to deduct tax at source @2% on the cash withdrawals of 5lakhs, being the sum exceeding 1crore under section 194N on 10.11.2024. Accordingly, tax to be deduction at source is 10,000. Since Mr. B has not filed his return of income for all the three assessment years relevant to the previous years for which due date of filing return of income has expired at the time of cash withdrawals, the co-operative bank is required to deduct tax at source@ 2% on 3 lakhs (exceeding 20lakhs) on 05.4.2024 and on 75 lakhs on 10.11.2024, being the sum exceeding 20lakhs but does not exceed 1crore. Accordingly, tax deduction at source is 1,56,000 [₹ 6,000 +1,50,000].