The Central Board of Direct Taxes (CBDT) today notified that the limit prescribed on cash transactions shall not be applicable to cash withdrawals from Banks, Post Offices etc.
Last day, the Board issued a press release clarifying that the restrictions on cash transactions as introduced in the Finance Bill will not be applicable to cash withdrawals from banks, post offices, co-operative banks etc.
Subsequent to the Press release, the Team Tax Scan sought for a clarification. Responding to the queries, the Revenue Secretary Dr. Hasmukh Adhia tweeted that “There is no confusion. The transaction of deposit and withdrawals from banks/post offices will not attract penalty even if it exceeds 2 lacs.”
@tax_scan @FinMinIndia There is no confusion.The transaction of deposit and withdrawal from banks/post offices will not attract penalty even if it exceeds 2 lacs.
— Dr Hasmukh Adhia (@adhia03) April 5, 2017
As per the Notification released today, the ban on cash transaction in excess of Rs 2 lakh will not be applicable to withdrawals from banks, Co-operative Banks and post office savings.
It is stated that “the provision of section 269ST shall not apply to receipt by any person from an entity referred to in sub-clause (b) of clause (i) of the proviso to section 269ST.”
“The notification shall be deemed to have come into force with effect from 1st day of April, 2017”, it said.
Read the full text of the notification below.
