Chandrababu Naidu-led panel recommended taxing cash transactions of at least Rs 50,000
The finance ministry on Wednesday said it had not taken a decision on the banking cash transaction tax (BCTT) a day after speculation arose that it could be introduced in thefor 2017-18 because a panel on digitalisation had made a case for it.
A committee on digitalisation headed by Andhra Pradesh Chief Minister Chandrababu Naidu had in an interim report recommended taxing cash transactions of at least Rs 50,000 to promote digital payments. The committee also wanted the Reserve Bank of India (RBI) and the finance ministry not to permit cash transactions above a threshold.
“We have submitted the recommendations to Prime Minister Narendra Modi today and are fairly confident that some of these will be incorporated in the Union Budget,” Naidu had told the media on Tuesday.
“The media has reported various aspects of the recommendations made by the committee, including the recommendation relating to levy of the banking cash transaction tax on transactions of Rs 50,000 and above. The government has not yet taken any final view on the recommendations of the committee,” the finance ministry statement said.
The ministry added the recommendations would be carefully examined and appropriate decisions would be taken in due course. The recommendations were made when the Budget documents had already been sent for printing. However, last-minute changes in the Budget could always be incorporated, sources said.