The recent market buzz regarding the new introduction of the tax is not yet confirmed yet by the government. the central government is deciding to attract a new tax of nearly 3-5% on withdrawal of Rs 10 lakh annually.

The main purpose of the new tax is to encourage users for digital payments. It would result in a great push to the digital economy and discourage large cash transactions and black money.

However, discussion among the officials is still pending to say any concrete statement yet on this.

Earlier, in the year, 2016 While Andhra Pradesh had CM N Chandrababu Naidu, the recommendation for the reintroduction of the cash withdrawal tax was proposed on the withdrawal of over Rs 50,000. However, the proposal was not taken into consideration.