No restriction on bank withdrawals, says tax board

The Central Board of Direct Taxes (CBDT) clarified on Wednesday that restrictions on cash transactions in excess of Rs 2 lakh will not be applicable to withdrawals from banks, cooperative banks or post office savings banks. Necessary notification in this regard is being issued, it said.

The government has through the Finance Act 2017 banned cash transactions of more than Rs 2 lakh and said a penalty of an equal amount would be levied on the receiver. 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. The said restriction is also not applicable to any receipt by government, banking company, post office savings bank or co-operative bank, the CBDT said.

The move to ban cash transaction above a threshold was aimed at curbing black money.