Ban on cash transactions of over Rs.2 lakh not applicable for bank withdrawls

The Income Tax department has clarified that the ban on cash transaction in excess of 2 lakh rupees will not be applicable to withdrawals from banks and post office savings accounts. 

Through the Finance Act



2017, the government has banned cash transactions of over 2 lakhs and said a penalty of an equal amount would be levied on the receiver. The Central Board of Direct Taxes said, a necessary notification in this regard would be issued.