No ban on Rs 2 lakh and above withdrawal from banks or post offices
Posted on: 06/Apr/2017 11:41:46 AM
The Central Board of Direct Taxes said that ban imposed on cash transactions above Rs 2 lakh that is in existence will not be applicable for withdrawals from savings account maintained with banks or post offices.
According to the Finance Act 2017, customers who withdraw amount beyond the preset threshold are bound to pay penalty equal to the transacted amount on account of violation of rules. Dealing with cash transactions of Rs 2 lakh in a day is permitted to none.
In its statement, CBDT stated that the receipts by government or banking companies, or post office savings bank or cooperative banks will be exempted from the restriction. Soon, this change will be implemented with a notification.
Arun Jaitley, in his 2017-18 budget, he proposed to impose ban on cash transactions above Rs 3 lakh per day. This is intended to curb bulk transactions and dismay black economy. The limit was then lowered to Rs 2 lakh with the amendment made to the Finance Bill 2017 that later got passed in the parliament.
Further, according to the Finance Act, cash expenses above Rs 10,000 are not eligible for depreciation allowance or investment linked deduction. Likewise, the revenue expense made as cash is reduced from Rs 20,000 to Rs 10,000.
