Among many proposals to incentivise digital transactions, a ‘cash tax’ is being considered by the government. If the proposal is cleared, it may figure in the February 1 budget.

The government is weighing the pros and cons of the proposal, which could be a tweaked form of the earlier banking cash transaction tax under the United Progressive Alliance government, under which tax will be levied on cash withdrawals above a certain ceiling from bank accounts, a government official famili ..