In the latest move, the government has abolished banking cash transaction tax (BCTT) from April 1 as decided earlier. Now, the taxpayers will not have to shell out the charges on withdrawal of cash from banks.
In the fiscal 2005, the government had introduced 0.1% BCCT on cash withdrawals of more than Rs 50,000 (individuals) and Rs 1 lakh for others in a single day from non-savings bank account maintained with any scheduled bank.
In the budget for 2008-09, the then finance minister P Chidambaram has announced the withdrawal from April 1, 2009.
Why was this Tax Abolished just 2 months ahead of General Elections ? The answer is obvious – Our Politicians want to launder money during elections which should go unnoticed and should not be tracked :- )