Previously, between 1 June, 2005 and 1 April, 2009, the UPA government under finance minister P Chidamabaram had introduced the banking cash transaction tax (BCTT) to curb black money transactions in the country. The rate of 0.1 percent of cash withdrawal was levied under BCTT, other than from savings accounts. This tax was levied on any individual or Hindu undivided family towards withdrawal of Rs 50,000. For entities, the tax was imposed on withdrawal of Rs 1 lakh in cash.
However, the government then withdrew the BCTT rule in the budget of 2008-09, suggesting that the tax department had enough sophisticated information collecting mechanism to curb black money, the
Business Standard report said.