CBDT Considering SIT’s Proposal to Ban Cash Deals Over Rs 3 Lakh
Banning cash deals over Rs 3 lakh under consideration: CBDT
Government is examining SIT’s recommendation of banning cash transactions of over Rs 3 lakh in a bid to clamp down on black money in the economy, CBDT Chairperson Rani Singh Nair said today. The move follows Supreme Court-appointed Special Investigation Team on black money recommending banning cash transactions of Rs 3 lakh and above and restricting cash holding with individuals and industry to Rs 15 lakh to curb illegal wealth in the country.
These recommendations have come. It (banning cash transactions over Rs 3 lakh) is under examination. SIT recommendations are under consideration.Rani Singh Nair, Chairperson, CBDT
The Income Tax Department, she said, has already put a 1 percent tax collected at source on cash transactions and made quoting of PAN mandatory.
All these aspects are part of SIT recommendations to stop use of cash in the economy. Suggestion on Rs 3 lakh and above is under consideration.Rani Singh Nair, Chairperson, CBDT
The SIT, headed by Justice MB Shah (retired), last month submitted its fifth report to the Supreme Court on steps needed to curb black money.
The SIT in its report noted that a large amount of unaccounted wealth is stored in cash:
“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.”
It recommended a total ban on cash transactions of Rs 3 lakh and above and that “an Act be framed to declare such transactions as illegal and punishable under law”.
Suggesting an upper limit of Rs 15 lakh on cash holding, SIT had stated that special permission of the Commissioner of Income Tax of the area should be taken in this regard.