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Thursday, 6 April 2017

Rs 2 lakh cash transaction limit not applicable on bank withdrawals: IT

The Income Tax Department on Wednesday clarified that the Rs 2 lakh cash transaction limit, as announced in the Finance Bill, 2017, will not be applicable on withdrawals from bank, cooperative bank or a post office savings account.

“Restriction on cash transaction shall not apply to withdrawal of cash from a bank/co-operative bank or a post office savings bank,” the department said in a tweet.

In a move to curb black money, the government has placed a ceiling of Rs 2 lakh on cash transactions, which is lower than the Rs 3 lakh proposed in Budget 2017-18. The penalty for violating this is a fine equivalent to the amount of transaction.

An amendment to this effect has been made in the Finance Bill, 2017, which has been approved by the Parliament.

“No person (other than those specified therein) shall receive an amount of Rs 2 lakh or more, in aggregate from a person in a day; in respect of a single transaction; or in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account,” the department said.

The other major announcements in the Finance Bill include, restriction on receipt of cash donation up to Rs 2,000 for political parties and reducing presumptive taxation for small unorganised businesses from 8 per cent to 6 per cent for the amount of turnover realised through cheque or digital mode.

Source : http://www.hindustantimes.com

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