Good Bye BCTT
With effect from April 01, cash withdrawals from bank will not attract tax. This is following abolition of the banking cash transaction tax (BCTT) in the Union Budget 2008-09.
The BCTT was introduced in Budget 2005-06 with the aim for setting an audit trail and to prevent money laundering using the banking channels and was applicable in whole of India except Jammu & Kashmir.
Cash withdrawals over Rs.50,000 in a single day by individuals and Hindu undivided families from current accounts attracted BCTT at the rate of 0.1%. The limit for others was Rs.1,00,000. Cash withdrawals from savings bank account did not attract the levy after an initial proposal to do so raised a furore among people.
The total collection of BCTT stood at Rs.600 crore in 2008-09.
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