Global Markets

No Ban on Cash Withdrawal from Bank and Post Office

Different administrative strides are taken by the Finance Act, 2017. All of this is to check dark cash by debilitating money exchange and by advancing digital economy. The central Board of Direct Taxes recently announced that the restriction on money exchanges of more than Rs. 2 lakh a day won’t make a difference to cash withdrawal from post office, bank, investment accounts and agreeable banks. Let us have a look at all the details about this news.

  • The Finance Act 2017:

The Finance Act 2017 recommends imposing a punishment equivalent to the executed sum on the individuals who violates the rule limiting money exchanges. It gives that nobody can bargain in trade out abundance of Rs. 2 lakh a single day, in regard of a single exchange or exchanges identifying with one occasion or event. The Finance Act 2017 has made it compulsory for citizens to cite Aadhaar or the enrollment ID of Aadhaar application form for recording of income tax returns. It has additionally made mandatory for applying for the income tax permanent account number with impact July 1, 2017.

According to the CRBT, the limitations will likewise not have any significant bearing to any receipt by government, post office savings bank, banking company as well as cooperative banks.

  • No Limit on Cash Withdrawal from Bank: It’s Your Money

A notification will be issued to actualize this change. To control huge money exchanges and demoralize dark economy, Arun Jaitley, the Finance Minister, in the budget 2017-18, proposed to boycott exchange of over Rs. 3 lakh a day. This utmost is brought down to Rs. 2 lakh through an alteration to the Finance Bill 2017 that was later passed by Parliament. Infact, in another related measure, the Finance Act said any capital consumption in real money surpassing Rs. 10,000 should not be qualified for asserting depreciation allowance or venture-related deduction therefore no more buying of luxury items in cash more than Rs. 2 Lakhs. Essentially, the cutoff for expenses using cash is sliced to Rs. 10,000 from Rs. 20,000.

  • Role Of Adhaar card In This Step To Curb Black Money:

Just the individuals who are qualified to acquire Aadhaar should cite the number while documenting income tax return. This comes with an added objective of curbing duplicate pan holders filling income tax returns. It states that such compulsory citing of Aadhaar or enrolment ID might apply just to a man who is qualified to acquire Aadhaar number. In this manner, the necessity to cite Aadhaar according to section 139AA of the Income-Tax Act might not have any significant bearing to a person who is not an inhabitant according to the Aadhaar Act, 2016.

Inhabitants, according to the Act implies a person who has dwelled in India for no less than 182 days in the 12 months, instantly going before the date of use for the enrolment. Amit Maheshwari Partner, Ashok Maheshwary and Associates LLP said that CBDT has cleared up that an expat; if he has stayed for over 182 days in India in the previous 12 months and is paying taxes in India would be required to apply for an Aadhaar card. In addition, expats who have left the nation ought to record their expenses before first July, 2017.

According to the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, just an occupant individual is qualified to obtain Aadhaar.

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