SIT wants cap on cash transactions at 3 lakh

The Special Investigation Team (SIT) on black money has recommended ban on cash transactions of above Rs 3 lakh and a cap on individual cash holding at Rs 15 lakh. The SIT, headed by Justice M.B. Shah (Retd), has submitted its fifth report to the Supreme Court.

“Having considered the provisions which exist in this regard in various countries and also having considered various reports and observations of courts regarding cash transactions the SIT felt that there is a need to put an upper limit to cash transactions,” an official statement said.

Favoring proscription of cash transactions above Rs 3 lakh, SIT said that “an Act [should] be framed to declare such transactions as illegal and punishable under law.”

The persons and firms who need to keep huge cash, in excess of Rs 15 lakh, should get permission from the Commissioner of Income Tax of the area, the panel said.

SIT has also recommended an amendment to the Black Money (Undisclosed Foreign Income and Assets) & Imposition of Tax Act, 2015. It wants “undisclosed foreign income and assets would vest in the Union of India.”

“Once it is held that under the law, property vests in Union of India, the person who is holding the said property outside the country shall have to prove that it was acquired legally and/or held after obtaining necessary permission from the RBI,” it said.

On overseas purchases, it suggested that “before investing any amount or purchasing any property outside the country, the assessee must inform the concerned jurisdictional Commissioner of Income Tax Department of the State. It should be made clear that even if the permission of RBI is not required for investing or purchasing the assets outside the country, the assessee must inform the concerned jurisdictional Commissioner of Income Tax Department of the State, before investing or purchasing the assets outside the country.”