New Delhi, Apr 1: The government of India on Wednesday, Apr 1 withdrew the Banking Cash Transaction Tax (BCTT) giving relief to the taxpayers as now on they will not have to pay levy on cash withdrawal from banks.
It was in 2005 the government introduced 0.1 pc BCTT on cash withdrawals of more than Rs 50,000 (individuals) and Rs 1,00,000 for others in a single day from non-savings bank account maintained with any scheduled bank.
The levy was started to track the unaccounted money and trace its source and destination. However the levy as per the revised estimates contributed to the exchequer Rs 600 cr during 2008-09. In 2007-08 the BCTT collection was Rs 550 cr for 2007-08.