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How to obtain Section 194N TDS exemption certificate for cash withdrawals exceeding Rs 20 Lakhs

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Rajesh Sharma
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Reply #69
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Sep 10, 2026
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As per CBDT Notification No. 70/2019 and RBI guidelines, Business Correspondents (BCs) and White Label ATM operators are 100% EXEMPT from Section 194N TDS deduction on cash withdrawals made for banking operations.

Your branch is deducting TDS because they haven't flagged your current account as a Banking Correspondent Kiosk Pool Account in their Finacle / CBS software.

Documents to submit to your branch:

  1. Copy of CBDT Notification No. 70/2019
  2. Your BC Agent Agreement with the bank / aggregator
  3. A written request letter to the Branch Manager citing the exemption
  4. Recent NPCI / UIDAI registration certificate as BC operator

Once the Branch Manager flags the account in CBS, TDS deductions stop immediately and previously deducted TDS can be claimed as refund in ITR.

Revision History (1)

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Rev #1
Edited by Rajesh Sharma •
Author Edit
8:05 PM · 12 Sep 2026
Reason for edit: Added CBDT Section 194N exemption notification reference number 70/2019
Previous Content
## Initial Draft As per **CBDT Notification No. 70/2019** and RBI guidelines, Business Correspondents (BCs) and White Label ATM operators are **100% EXEMPT** from Section 194N T... > *Pending confirmation with NPCI / UIDAI / IRCTC guidelines — edit reason: Added CBDT Section 194N exemption notification reference number 70/2019*
Revised Content
As per **CBDT Notification No. 70/2019** and RBI guidelines, Business Correspondents (BCs) and White Label ATM operators are **100% EXEMPT** from Section 194N TDS deduction on cash withdrawals made for banking operations. Your branch is deducting TDS because they haven't flagged your current account as a **`Banking Correspondent Kiosk Pool Account`** in their Finacle / CBS software. **Documents to submit to your branch:** 1. Copy of **CBDT Notification No. 70/2019** 2. Your **BC Agent Agreement** with the bank / aggregator 3. A written request letter to the Branch Manager citing the exemption 4. Recent **NPCI / UIDAI registration certificate** as BC operator > Once the Branch Manager flags the account in CBS, TDS deductions stop immediately and previously deducted TDS can be claimed as refund in ITR.
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