Individuals withdrawing cash up to 50,000 from their current accounts in banks will not have to pay any tax as the exemption limit for the Banking Cash Transaction Tax has been raised.
Presenting the Union Budget 2007-08 on Wednesday, Finance Minister P Chidambaram said the exemption for individuals and Hindu Undivided Families for the BCTT had been raised from Rs 25,000 to Rs 50,000.
Cash withdrawals by Central and state governments have been excluded from this scope, he said.
While appreciating the BCTT as a useful tool to track unaccounted money, he said it would be possible to review the tax next year as other instruments become more effective.
