Withdrawing Rs 10 lakh a year may attract 3-5% tax
GUWAHATI: In a move to discourage cash usage in the economy and resultant black money, the central government is thinking of introducing a tax of 3-5 percent on cash withdrawal of Rs 10 lakh in a year.
The government is of the opinion that paying Rs 30,000-50,000 for Rs 10 lakh annual withdrawal will be seen as a loss and feels that levying of tax this will discourage large cash transactions.
A proposal is going on in the Finance Ministry to track high-value cash deals and make digital payments mandatory.
Official sources said discussions have been held internally on the fallout of such a move and the tax figure is still being discussed, said sources adding 3-5 percent is an appropriate figure.
Source: India Today