Assertive measures being planned to boost Cashless economy

The Govt. is considering a ‘cash tax’ to boost digital transactions which if cleared, may figure in the Feb 1 budget.

The new tax will be imposed on cash withdrawals over a certain limit from bank accounts. This is among a few other measures being planned to discourage large cash transactions, reports a national daily. The purpose of the new tax is to shrink the scope of cash economy and encourage digital transactions. “The idea is under consideration and there is a good chance it could be announced in the budget”, said an official to the newspaper. The Special Investigation Team (SIT) has already recommended a ban on cash transactions above 3 Lac and a 15 Lac rupee limit on individual cash holding for prevention of black money