To curb the black money in the economy, finance minister has come up with a new provision in the current budget. Which says every transaction through cheque, draft, ATM above Rs 10,000 will be liable to tax at Rs 10 for every Rs 10,000. This will help in bringing the payments made by businessmen, who otherwise do not pay tax but make payments through cheque/DDs, to the notice of the Governments through Bank reports.
But the funniest part is… the same is applicable to ATM’s too. And now every bank will be required to install new ATM machines, which will deduct the appropriate amount from the money withdrawn. As the current machines provide you with cash in the denomination of Rs 100 or above or maybe Rs 50 or above in some cases. Unnecessary waste…..
So after these provisions come into effect, the next time I have to withdraw Rs 20000, I will get Rs 19980. But if I need exact 20000, i need to withdraw a little above 20000, maybe by applying an appropriate formula :banghead:
The demands of amending this provision, so that it’s applicable to Rs 50,000 and above, has been rejected by the Finance minister.
Poonam says
That is not good at all for the ATM machines. :no: Or for those who use ATM machines. My god there are already such a long queues at the ATM oopar se sochna padega ke kitna nikalna hai…I will have to tell Neeraj about this. :yes:
Ankur says
Remember, this provision is still to come into effect ❗
Manu says
Oh wow. That won’t be good if this get applied on the ATM’s as well:no:. But hey, do people really withdraw such huge amounts from ATM’s in India? I know over here there is a limit on the amount you could withdraw…like with my bank it’s $400 per day.
Ankur says
Rs 25,000/ is the cash limit for most of the ATMs. There are cases, when you need huge cash, I have myself withdrawn many times to the max.
P.S. This ATM withdrawal charges are applicable to the total withdrawals in a day.
Mona says
That’s not good at all … I am really confused with those fees which being charged by the bank. There are so many administration fee … In here, there is a limitation for withdrawing money from ATM so there is no such charge in Indonesia. However, there is a charge when you have little money on your account. For example, the min money that you should have on your account is $5000, when you have less than that, they will charge you admin fee every month around $100. Isn’t it mad ? it means one day you will lose all your money just for the admin fee ??? :banghead:
Ankur says
This is not a fees by bank, but a tax by government.
You are right Mona, one day here instead of fees our whole salary will go in the hands of government in the form of different taxes.
Every few months, a new tax is introduced like Service tax, Professional tax, Transaction Tax on Shares and now this tax :faint:
And all these taxes are in addition to Income tax :yes:
Nilesh says
Something like that would be a technical nightmare for ATM manufacturers. Instead, it is more likely to charge you 20 additional rupees from your account while dispensing Rs. 20000 to you.
Ankur says
Right Nilesh ❗
The latter is the more appropriate and feasible solution. And I though that is the way it will work.
But some banks did objected and said they will have to get new ATM machines manufactures 😯
Let see, what is decided finally 😎