The Income Tax department has made it clear that the ban on cash transactions in excess of Rs 2 lakh will not be applicable to withdrawals from the accounts of banks/cooperative banks and post office savings.
Through the finance Act 2017, the government has barred cash transactions of over Rs. 2 lakhs and mentioned a penalty of an equal amount would be charged on the receiver.
The Central Board of Direct Taxes stated, a mandatory notification in this respect would be provided.
Restriction on cash transaction shall not apply to withdrawal of cash from a bank/co-operative bank or a post office savings bank.
5/5— Income Tax India (@IncomeTaxIndia) April 5, 2017
