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With a view to meet the commitment made in the National Common Minimum Programme (NCMP) to check tax evasion, the Budget has proposed levy of a tax at the rate of 0.1 per cent on cash withdrawals of over Rs. 10,000 or more on a single day, since it is felt that large cash transactions become part of black money. Thus, a person withdrawing Rs. 10,000 in cash would have to pay a sum of Rs. 10 as tax. Another measure requires the banks to report to the Government all deposits which are exempt from TDS on interest. The results of these steps will be observed to bring about further measures to check evasion.
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