Section 194 of the Act was inserted by Finance (No. 2) Act, 2019 with effect from 01/09/2019, with the legislative intend as under: -
"In order to further discourage cash transactions and move towards less cash economy it is proposed … to provide for levy of TDS at the rate of 2% on cash payments in excess of one crore rupees in aggregate made during the year, by a banking company or cooperative bank or post office, to any person from an account maintained by the recipient". (Emphasis supplied)
Further, Finance Act 2020 has entirely substituted the entire Section and introduced new section 194N in the Statue Book.
Same is discussed in detail, in the attached presentation. Hope you will find the same helpful. Happy Reading..