Lok Sabha Question No. 1431 (UNSTARRED), answered on 2019-07-01
Subject: Tax on Cash Withdrawal
Ministry: FINANCE
Asked by: Kalyan Banerjee

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 1431

TO BE ANSWERED ON MONDAY 1 st  JULY, 2019 ASHADHA 10, 1941 [SAKA]

## TAX ON CASH WITHDRAWAL

## 1431. SHRI KALYAN BANERJEE

Will the Minister of FINANCE be pleased to state:-

- (a) whether the Government proposes to introduce tax on withdrawal of Rs. 10 lakh cash in a year;
- (b) if so, the details thereof and the reasons therefor along with the benefits likely to accrue as a result thereof;
- (c) whether the Government has failed to introduce digital payments for all types of transactions and if so, the details thereof;
- (d) whether cash withdrawal transaction over ₹ 10 lakh per annum has been recorded for 2012-16 October and November 2016- March 2019; and
- (e) if so, the details thereof, periodwise?

## ANSWER

## FINANCE MINISTER

## (SMT. NIRMALA SITHARAMAN)

(a)&(b): Various Proposals/ Representations/ Suggestions relating to the amendments in tax laws are  examined  at  the  time  of  the  preparation  of  the  Finance  Bill  and  the  outcome  of  the  same  is reflected in the Finance Bill tabled before the Parliament.

- (c) No  sir.  The  Government  is  promoting  Digital  payments.  Details  of  growth  of  Digital transactions for all modes from October, 2016 to March 2019 is placed below:

|         |   Number of transactions (in crore) | Total amount involved in transactions (in rupees crore)   |
|---------|-------------------------------------|-----------------------------------------------------------|
| Oct' 16 |                               79.67 | 10,870,118.41                                             |
| Nov'16  |                               91.83 | 11,227,138.54                                             |
| Dec'16  |                              132.93 | 12,457,246.25                                             |
| Jan'17  |                              125.6  | 11,393,702.05                                             |
| Feb'17  |                              111.37 | 10,798,480.98                                             |
| Mar'17  |                              130.64 | 17,261,132.04                                             |

| April'17   |   159.74 | 14,843,153.06   |
|------------|----------|-----------------|
| May'17     |   156.76 | 15,144,963.27   |
| June'17    |   152.9  | 15,443,478.97   |
| July'17    |   156.57 | 14,575,915.46   |
| Aug'17     |   158.02 | 15,114,700.97   |
| Sep'17     |   158.34 | 16,919,903.46   |
| Oct'17     |   168.79 | 15,644,160.29   |
| Nov'17     |   174.31 | 16,506,429.41   |
| Dec'17     |   193.6  | 16,944,318.67   |
| Jan'18     |   198.36 | 18,204,042.10   |
| Feb'18     |   190.79 | 15,215,306.29   |
| Mar'18     |   202.2  | 21,685,766.24   |
| Apr'18     |   209.72 | 17,376,498.40   |
| May'18     |   219.77 | 21,408,29l.00   |
| Jun'18     |   223.37 | 21,439,453.73   |
| Jul'18     |   231.74 | 20,631,310.34   |
| Aug'18     |   244.79 | 20,326,521.49   |
| Sep'18     |   248.06 | 19,466,713.12   |
| Oct'18     |   270.71 | 20,248,932.67   |
| Nov'18     |   267.62 | 18,610,174.13   |
| Dec'18     |   292.12 | 20,296,898.01   |
| Jan'19     |   303.22 | 21,769,287.08   |
| Feb'19     |   290.12 | 20,723,773.17   |
| Mar'19     |   332.34 | 25,802,322.77   |

Source:

RBI and NPCI.

(d)& (e) The Statement of Financial Transactions (SFT) data, containing details of cash withdrawal above a threshold in a year and with respect to specified accounts, is received by the Income Tax Department starting from financial year 2016-17. Since the records are aggregated for a Financial Year, hence, the data for the period from April, 2016 to October, 2016 and from November, 2016 to March, 2019 is not segregated. Data is also collected by the Financial Intelligence Unit-India (FIUIND)  which  is  aggregate  of  both  cash  deposits  and  withdrawal,  hence  cash  withdrawal  is  not segregated.

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