NEW DELHI: Individuals and Hindu Undivided Families (HUFs) 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 (BCTT) is proposed to be raised. He also promised to review the tax next year.
Presenting the Union budget 2007-08 in Parliament on Wednesday, Finance Minister P. Chidambaram said the exemption for individuals and HUFs for the BCTT had been raised from Rs. 25,000 to Rs. 50,000. Also cash withdrawals by Central and State governments are being excluded from the scope of the BCTT, he said.