Can a member draw unlimited amount from his account maintained with a credit cooperative society in light of New provisions of income tax 2017?
I C Naik
Comment by CBDT In the 2017-18 Budget, Finance Minister Arun Jaitley had proposed to ban cash transaction of over Rs 3 lakh. This limit was lowered to Rs 2 lakh as an amendment to the Finance Bill, which was passed by the Lok Sabha last month. The restriction is also not applicable to any receipt by the government, banking company, post office savings bank or co-operative bank, said CBDT, the apex policy-making body of the Income Tax Department.
The rule The move to ban cash transactions above a threshold was aimed at curbing black money by discouraging cash transaction and promoting digital economy. According to the rule, no individual can deal in cash more than Rs 2 lakh on a single day, in respect of a single transaction or respect of transactions relating to one event or occasion from an individual.