The special investigation team (SIT) on black money has recommended a “total ban” on cash transactions above Rs 3 lakh and suggests a law be framed to declare cash transactions above this limit illega
The special investigation team (SIT) on black money has recommended a “total ban” on cash transactions above Rs 3 lakh and suggests a law be framed to declare cash transactions above this limit illegal and punishable.
It also seeks to restrict the maximum cash holding with individuals to Rs 15 lakh to curb illegal wealth in the economy. If any person or industry needs to hold cash over Rs 15 lakh, it may obtain necessary permission from the area’s commissioner of income tax.
The special investigation team, headed by Justice M.B. Shah (Retd), submitted its fifth report to the Supreme Court on methods to curb black money in the economy.
The SIT recommends that if cash in excess of Rs 3 lakh is withdrawn from any bank, “then that bank should consider it as a suspicious activity and should report it to the Financial Intelligence Unit and Income-Tax Department”.
The special investigation team also recommends that the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, be amended to allow property or assets in foreign countries bought by Indians using black money to vest with the Union of India.
