FM may raise limit for cash withdrawals

New Delhi: Finance minister P Chidambaram hinted at raising the limit on withdrawal of cash for tax.

"Now we have suggested a way in which black money can be tracked. Let's see if there can be some other way. If a better tracking system can be found without hurting people psychologically, we will find another way," he said in a public interaction at FICCI.

Insisting that the tax was not a revenue generation measure but aimed at keeping a track on black money, the finance minister said there had been a request from Congress Parliamentary Party and UPA. "I am thinking of putting a different cap on cash withdrawal." Replying to widespread criticism of the Fringe Benefit Tax, Chidambaram said legitimate business expenses would not be taxed. Fringe benefits were those given to employees collectively as a reward for their employment, he said.