Ban on cash transactions of over Rs 2 lakh not applicable for bank, post office withdrawals
The Central Board of Direct Taxes (CBDT) has clarified that the ban on cash transaction in excess of Rs. 2 lakh will not be applicable to withdrawals from banks and post office savings accounts. Central Government has banned cash transactions of over 2 lakh through the Finance Act 2017. Under it, cash transactions of over 2 lakhs will a penalty of an equal amount would be levied on the receiver.