Banking Cash Transactions Tax (BCCT)

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Banking Cash Transactions Tax (BCTT)

Banking Cash Transactions Tax (BCTT) is leviable on the following taxable banking transactions entered into on or after 1st June, 2005 at the rate of 0.1% of the value of the taxable banking transaction.

Taxable banking transaction	Applicable in respect of transaction exceeding Rs.		Value of a taxable banking transaction
	Individual/HUF	Others
Withdrawal of cash on any single day (by whatever mode) from an account other than savings bank account from any scheduled bank.	50,000	1,00,000	Amount of cash withdrawn
Receipt of cash from any scheduled bank on any single day on encashment of term deposit, whether on maturity or otherwise.	50,000	1,00,000	Amount of cash received

No BCTT will be leviable if the amount of the term deposit is credited to any bank account. BCTT paid will be allowed as a deduction under section 36(1)(xiii).

Banking Cash Transaction Rules, 2005 have come into force w.e.f. 1st June, 2005 [145 Taxman (ST) 37] Notification No. 156/2005 [F No. 142/09/2005-TPL] dated 30th May, 2005.

No BCTT shall be charged in respect of any taxable banking transactions after 31st March, 2009.