Transactions from savings and salary accounts will be taxed

News 4 Sat 01 Apr 2023
Transactions from …

After demonetisation, the government has now made preparations to clamp down on cash transactions. From March 1, cash handling charges will be levied in banks for withdrawing and depositing cash from the account. Private banks have also released its rates. Public sector banks are also preparing for this. As per the rule, the first four transactions of every month will be free after which the charge will be taken.

To promote cashless economy, the government has implemented these new rules on withdrawing and depositing cash. Under this, apart from cash handling charge of Rs 150, service tax and cess will be applicable not only for cash transactions from own account but also for depositing third party cash. Although the scope of this rule

The new rule will be applicable in private banks from March 1, the first four transactions are free, after that the fee will be charged.

This will be cash handling charge

A person will get only four free chances in a month to deposit or withdraw cash from the account. After this, in the fifth transaction, apart from cash handling charge of Rs 150, service tax and cess will have to be paid in addition to about Rs 173.

Cash can be deposited in the home branch only two lakh rupees in a month


Cash handling charge of Rs 5 per thousand and Rs 150, service tax and cess will be levied separately on deposits above Rs 2 lakh. The special thing is that if an additional deposit of ten thousand is made outside the limit of two lakhs, then Rs 150 cash handling charge, service tax, cess and Rs 5 per thousand will be charged on that too.

A maximum of Rs 25,000 can be deposited in a non-home branch in a day. Cash deposit above this will attract Rs 150, service tax and cess in addition to Rs 5 per thousand.

Cash transactions to third parties can be done up to a maximum of Rs 25,000 in a day. On this also Rs 150 service tax and cess will be levied separately, no more than Rs 25,000 cash transaction will be allowed.

#Source by Media.

--Posted By : Sonika

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