No Final Decision on Taxing Cash Deals Above Rs 50,000: Finance Ministry
The Finance Ministry on Wednesday clarified that a final call on the recommendations of the panel of Chief Ministers, which includes a tax on cash transactions above Rs 50,000, is yet to be made.
File image of Prime Minister Narendra Modi and Finance Minister Arun Jaitley. (Image: PTI)
New Delhi: The Finance Ministry on Wednesday clarified that a final call on the recommendations of the panel of Chief Ministers, which includes a tax on cash transactions above Rs 50,000, is yet to be made.
"The recommendations of the committee (on digital payments, headed by Andhra Pradesh Chief Minister N. Chandrababu Naidu) will be carefully examined and appropriate decisions will be taken in due course," the ministry said.
"The committee has submitted an interim report to the government. The government has not yet taken any final view on the recommendations of the committee."
The panel said the government must tax cash transactions above Rs 50,000, abolish banks' interest on credit card transactions, give tax refund to consumers on digital payments and extend Rs 1,000 subsidy on smart phones to non-income-tax payees to promote a less-cash digital economy.
The report was submitted to Prime Minister Narendra Modi on Tuesday.
The high-powered panel was asked to suggest measures to enable all sections of the population to migrate to digital payments and recommend measures to leapfrog to the advanced digital payment systems of global standards.
It was constituted on November 30 last year after the government demonetised Rs 500 and Rs 1,000 notes.
"To curb use of cash for large transactions consider a levy of the banking cash transaction tax on transactions of Rs 50,000 and above. Consider a cap on the maximum allowable limit of cash in all types of large size transactions," it said among its various recommendations.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Recommended For You
- Janhvi Kapoor Steps Out With Price Tag Attached to Outfit
- Bigg Boss 13: Devoleena Bhattacharjee Slaps Shehnaaz Gill During A Task
- BCCI Chief Sourav Ganguly Wore His Team Blazer From 19 Years Ago, Fans Go Gaga Over 'Dada Swag'
- Watch: Farmer Turns 910-Pound Pumpkin into Boat and Goes for a Ride in Pond
- Reliance Jio All-In-One Rs 222 Plan Vs. Airtel Rs 249 And Vodafone Rs 229 Recharge