If you’re someone who frequently uses ATMs, it’s important to stay updated with the latest changes regarding withdrawal limits and charges. Every bank has its set limits for daily cash withdrawals, which depend on the type of ATM card and bank policies. Some banks allow up to Rs. 40,000 daily, while others extend the limit to Rs. 50,000. These limits ensure customer security and control cash flow. However, for higher withdrawal needs, you might need to either withdraw directly from the bank or wait for the next day.
Higher Withdrawal? Know Your Options
If you need to withdraw more cash than the daily ATM limit allows, you can always head to your bank and withdraw larger sums over the counter. However, this comes with its own set of rules, particularly for bigger withdrawals. It’s crucial to be aware of these to avoid unnecessary hassle, especially when dealing with large amounts.
TDS on Cash Withdrawals Over Rs. 20 Lakh
One of the key rules to keep in mind involves TDS (Tax Deducted at Source) if you’re withdrawing more than Rs. 20 lakh in a financial year. If you haven’t filed your Income Tax Return (ITR) for the last three years, you will be subject to TDS at 2% on the withdrawn amount. For example, withdrawing Rs. 25 lakh would mean paying 2% of the excess Rs. 20 lakh as TDS.
For even larger withdrawals—over Rs. 1 crore—the TDS rate climbs to 5%. This ensures that tax compliance is maintained, particularly by those who haven’t been filing their ITR regularly. The good news is, if you’ve been timely with your ITR filings, these TDS rules won’t apply to you, even if you withdraw huge sums of money.
Bank Withdrawal Limits: Varies by Bank
ATM limits aren’t the only ones to watch out for. When withdrawing directly from the bank, limits can vary depending on the bank and your customer profile. In some cases, you may be allowed to withdraw up to Rs. 1 lakh in a single day, while premium services at certain banks might offer a withdrawal limit of up to Rs. 5 lakh. These variations are designed to cater to different customer needs and offer flexibility depending on the relationship with the bank.
