Cash Withdrawal Of Rs 10 Lakh A Year To Attract Tax Burden? Find Out

New Delhi: The Centre is planning to levy tax on cash withdrawal of Rs 10 lakh a year if media reports are to be believed.

1. According to a front-page report in The Times of India on its Monday edition, the aim is to encourage digital transaction and curb black money.

2. The proposal could find mention in the general budget, slated to be presented on July 5.

3. As per the news report, the government is of the view that when digital transactions are being encouraged, it leaves no reason for someone to withdraw cash of Rs 10 lakh a year.

4. However, given that the vast majority of people in the country still prefer cash transaction, it remains to be seen if the government can take the risk of burdening the common man with excessive compliance, the report said.

5. The government, the report said, is also considering making Aadhaar authentication mandatory for all high-value cash withdrawals to track such transactions and tally the tax returns.