As per the provisions of BCTT, non-corporate entities have to pay 0.01 per cent tax on all cash withdrawals above Rs 25,000 from current accounts on a single day. The corporates are also subject to the levy if they withdraw more than Rs 100,000 in a day from current accounts.
The government had to exempt withdrawals from savings bank accounts from BCTT after severe criticism last year.
States too may now be exempt from paying this tax while withdrawing money to pay salary to employees.
BCTT has proved to be effective to unearth black money and check the flow of black money in the economy, according to government officials.
What are your views on banking cash transaction tax?
Is this the best way to check the flow of black money?
Do you think it should be retained? Tell us your views.