The Hindu Business Line : Tax on bank transactions

Please refer to the article “What about the aam aurat’s Budget expectations?” (Business Line, February 18). In the report, it is stated: “As it is, he has to pay professional tax, cash handling tax for taking out our own money from the bank……”

The author has missed a few crucial points: Banking Cash Transaction Tax (BCTT) does not apply to a savings bank account; BCTT applies only to withdrawals by individuals and Hindu Undivided Families (HUF) of more than Rs 50,000 per day from any current account;

In the case of other entities, it applies only if the withdrawal is more than Rs 1 lakh per day from any current account; it is most unlikely that any individual will withdraw more than Rs 50,000 per day from his/her current account on any day (leave alone on several days a month). In fairness, your correspondent should have reported accurately the scope and application of the tax.

Rajul Awasthi Officer on Special Duty to the Finance Minister New Delhi

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