New Delhi: The government is likely to retain tax on bank cash withdrawals in the upcoming Budget despite strong demands from industrial bodies
The income tax department, which claims to have tracked black money worth thousands of crore through banking cash transaction tax (BCTT), has recommended its retention.
The government is likely to keep this tax, introduced in 2005, but bring more areas under Annual Information Returns (AIRs), the sources added.
Currently there are seven areas, including cash deposits of Rs ten lakh a year in a bank, credit card payment up to Rs two lakh under AIRs, which have been used as mechanisms to track high value spenders.
Finance minister P. Chidambaram had said he proposed to continue BCTT for some more time until the annual information returns (AIRs) system is able to capture all significant financial transactions.