Amendments in Other Acts:
BANKING CASH TRANSACTION TAX (BCTT) Exclusion of office or establishment of the Central Government or the Government of a State and enhancement of exemption limit in the provisions of Banking Cash Transaction Tax (BCTT). Under the existing provisions of Banking Cash Transaction Tax (BCTT), as contained in Chapter VII of the Finance Act, 2005, in section 94, tax is levied at the rate of 0.1 per cent (10 basis points) on taxable banking transactions. Such banking transactions include- (i) Withdrawals of cash (by whatever mode) exceeding Rs. 25,000 in the case of individuals and HUFs and Rs. 1,00,000 for other taxable entities on any single day from an account (other than a saving bank account) with any scheduled bank; and (ii) Receipt of cash exceeding a specified limit from any scheduled bank on any single day on encashment of one or more term deposits, whether on maturity or otherwise. The BCTT is also payable
amongst others, by an office or establishment of the Central Government or the Government of a State. It is proposed to amend the said section, so as to exclude the offices or establishments of the Central Government and governments of the states from the purview of definition of "person". It is also proposed to amend the said section so as to enhance the existing limit of taxable banking transactions from the present twenty-five thousand to fifty thousand rupees for individuals and Hindu undivided family. This amendment will take effect from the 1st of June, 2007. |
