Ban on cash transaction over Rs 2 lakh not applicable for banks & post office withdrawals

Income Tax Dept. clarifies ban on cash transaction over Rs 2 lakh not applicable for banks & post office withdrawals
New Delhi: Ban on cash transactions in excess of Rs. 2
lakh will not be applicable to withdrawals from banks and Post Office savings
accounts, the Income Tax Department said on Wednesday. Through the Finance Act
2017, the government has banned cash transactions of over Rs. 2 lakh
and said a penalty of an equal amount would be levied on the receiver. In a
clarification on the newly-inserted Section - 269ST - in the Income Tax Act,
the Central Board of Direct Taxes (CBDT) said the restriction will not apply to
withdrawal from banks and Post Offices.
"It has also been decided that the restriction on cash transaction shall
not apply to withdrawal of cash from a bank, co-operative bank or a post office
savings bank," the statement said.
It said necessary notification would be issued in this regard. In the 2017-18
Budget, Finance Minister Arun Jaitley had proposed to ban cash transaction of
over Rs. 3 lakh. This limit was lowered to Rs. 2 lakh as an
amendment to the Finance Bill, which was passed by the Lok Sabha last month.
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