Government for the reduction of the use of paper currency, decrease black money and to increase digital transactions is planning to impose a tax for the withdrawal of Rs. 10 lakh money by cash in a year. Another recommendation is the AadharAuthentication for every high-value withdrawals which will help to trace the individual easily and tally tax returns. Beyond this for the deposits over Rs. 50,000 PAN has to be given. The UID Authentication and OTP will ensure that Aadhar Numbers aren’t missed out.
A government official told, “An MGNREGA beneficiary needs to authenticate receipts using Aadharbut someone withdrawing Rs 5 lakh need not do so things stand.“ In the view of the government for any individual and businesses the annual transaction over Rs. 10 lakh is not needed so above board transactions should not be hampered by authentication. These discussions came upon the budget that needs to be presented on July 5th but not yet finalized. Last week RBI also announced that it remove charges on NEFT and RTGS Transfers and it will further review other transaction charges. The finance ministry told these will help to increase digital transactions.
The government finally concluded by saying whatever they do, they will make sure it will not burden the middle class and poor with the burden.
Tags : #Tax #Taxes #TaxWithdrawal #CashWithdrawal #TaxesOnCashWithdrawal