You May Have To Pay Tax For Withdrawing More Than Rs 10 Lakh A Year. Use Less Cash!

November 28, 2019 0 By JohnValbyNation

The government is looking at the possibility of introducing a tax on those withdrawing Rs 10 lakh in cash a year as it seeks to discourage the use of paper currency, crack down on black money and promote use of digital payments for all manner of transactions.

Government sources told TOI that another proposal under consideration is mandating Aadhaar authentication for all high-value cash withdrawals, which it believes will make it easy to track individuals and tally tax returns. In doing this, the government will go beyond just seeking the unique identification number, as is the case with deposits of over Rs 50,000 where PAN has to be given. The UID authentication and OTP will ensure that Aadhaar numbers are not misused.