Ban on cash transaction in excess of Rs 2 lakh will not be applicable to withdrawals from banks and post office savings accounts, the Income-Tax department annouced.
Through the Finance Act 2017, the government has banned cash transactions of over Rs 2 lakh and a penalty of an equal amount would be levied on the receiver.
In a clarification on the newly inserted Section 269ST in the I-T Act, the Central Board of Direct Taxes (CBDT) abort the restriction to withdrawal from banks and post offices. Restriction is also not applicable to any receipt by government, banking company, post office savings bank or co-operative bank respectively.
Takeaways from above News-
- Ban on cash transaction in excess of Rs 2 lakh will not be applicable to withdrawals from banks and post office savings accounts
- In the 2017-18 Budget, Finance Minister Arun Jaitley had proposed to ban cash transaction of over Rs 3 lakh which was lowered to Rs 2 lakh.
If you have any other takeaways, do share with us in the comment section
Source- The Economic Times