New Delhi: There is no proposal to replace income tax with the banking cash transaction tax, Parliament was informed on Friday.


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"In the present there is no such proposal under consideration," Minister of State for Finance Santosh Kumar Gangwar said in a written reply in the Lok Sabha, in reply to a query as to whether the government was considering replacement of income tax with a banking cash transaction tax.


Banking cash transaction tax of 0.1 percent was introduced in 2005 on cash withdrawals above a certain limit -- this was withdrawn on April 1, 2009.


The collection from banking cash transaction tax was significant as compared to income tax collections, Gangwar said.