Banking Cash Transaction Tax

In order to trap the black money our honorable Finance Minister Mr. P. Chidambaram has levied Banking Cash Transaction Tax in the Finance Act 2005. This tax is levied on cash withdrawls from the bank above the specified limits. This tax is applicable from all cash withdrawls from June 1, 2005.

This tax here in fourth referred as BCTT is levied on cash withdrawl (by whatever mode) on any single day from an account (other than saving bank account) maintained with any bank in India (except the state of Jammu and Kashmir) exceeding the following amount:-

Account (not being saving

Bank a/c) maintained by-                       Amount of withdrawl

Any individual or HUF                                     Rs. 50,000

A person other than any individual or HUF            Rs. 1,00,000

 

 

Term Deposit in the name of                    Amount of withdrawl

Any individual or HUF                                       Rs. 50,000

A person other than any individual or HUF           Rs. 1,00,000

BCTT is levied @ 0.1%  of the value of every such taxable banking transaction.

In the Finance Act 2008 our finance minister has withdrawn this tax from 01 April 2009. This means that on or after 01st April 2009 any sum of cash can be withdrawn from the bank account without paying any tax. As per him the purpose for which this tax was levied has been fulfilled . But no one know that whether the purpose has been fulfilled or the tax has been withdrawn as part of a statregy to capture the vote bank in the forthcoming elections.

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5 Responses to “Banking Cash Transaction Tax”

  1. Aditya R Kataria Says:

    I Want to Know the Latest Rate of BCTT

  2. KAMAL Says:

    BANK CASH TRASATION TAX (BCTT) (WITHDRAL TAX) IS WITHDRAS OR NOT FROM 1ST APRIL 2009

  3. vivek gangwani Says:

    Dear Sir
    We are in baghpat and local traders come and deposit high value cash ( > 100000). We have objected it and asked them to deposit through cheque.
    Sales Tax Commissioner from baghpat has approached us and said that as the money is going to government acccout we can accept deposit.
    please clarify can we accept cash deposit beyond 50000. wouldnt it come under money laundering
    regards
    vivek gangwani
    Branch Manager
    SBI, Baghpat
    99174081159

    • Viviek Says:

      Dear Vivekji,

      Any high value transaction does not automatically come under the perview of money laundering. More over if high value cash is deposited in bank that too for paying any tax does not in any case comes under money laundering.

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