The Hindu Business Line : Tax trail

This refers to the report `Huge withdrawals made in May-end to avoid tax trail' (Business Line, June 13). The BCTT (Banking Cash Transaction Tax) has indeed created panic and confusion among current account holders in banks, who are otherwise loaded with folio charges.

Depositors who operate current accounts in their personal capacities as traders or business-persons may prefer to stay away from the banks for fear of leakage in their hard earned profits.

It seems as if the Finance Ministry erred in judicious application of mind in the whole affair.

The general view maintained by the bankers that there has been no change in the mindset of the depositors may apply to the corporate sector, which contributes the major share of current account deposits.

Therefore, the Finance Minister may review the provision in the common interest of the banks.

C. P. Velayudhan Nair

Kochi

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