How Much Cash Can You Withdraw? Essential Rules And Limits

Need to withdraw cash from your bank account? It's crucial to understand the rules and limits to avoid any inconvenience. Whether it's a sudden expense or a planned withdrawal, knowing these guidelines can make your transaction smooth and hassle-free.

# Understanding Cash Withdrawal Limits
When it comes to withdrawing cash, banks and ATMs have specific limits:

• ATM Withdrawals : Typically, ATMs have a daily withdrawal limit. For instance, one ATM might allow withdrawals up to ₹40,000 per day, while another might cap it at ₹50,000. If you need more cash, you’ll have to wait until the next day.
• Bank Withdrawals : If you need a larger sum immediately, visiting your bank branch is your best option. Banks have varying cash withdrawal limits, with some allowing up to ₹1 lakh and others going as high as ₹5 lakh.

# Tax Deducted at Source (TDS) on Large Withdrawals
For substantial cash withdrawals, tax implications come into play:

• Withdrawals Exceeding ₹20 Lakh: If you withdraw more than ₹20 lakh and haven’t filed your Income Tax Returns (ITR) for the past three years, you will incur a Tax Deducted at Source (TDS) charge. The TDS rate is 2% for amounts above ₹20 lakh and 5% for withdrawals of ₹1 crore or more.
• Filed ITR: If your ITR is up-to-date, you can withdraw cash without facing TDS deductions.

Being informed about cash withdrawal rules can save you from unexpected hassles. Always check your bank’s specific limits and ensure your tax records are in order for larger withdrawals. This will ensure a smooth and efficient banking experience.