SIT suggested Rs 15 lakh as an upper limit of cash holding.
Justice M B Shah (retd) led Special Investigation Team (SIT) on black money has given recommendations to the Supreme Court.
It has recommended that there should be a ban on all the cash transactions over Rs 3 lakh. It is also suggested that restriction shall be placed for cash holding of not more than Rs 15 lakh with individuals to curb undeclared black wealth in the nation’s economy.
In its fifth report to the Supreme Court the SIT headed by Justice M B Shah (retd), submitted on methods to curb the flow of black money in the economy.
The panel found that a huge amount of unaccounted and undeclared wealth is stored and used in the form of cash.
After considering the provisions in this regard in various other countries the SIT felt that there is a urgent need to put an upper limit to cash transactions.
SIT recommended that there shall be a total ban on cash transactions above Rs 3 lakh and it be declared illegal and punishable under law.
Rs 15 lakh is suggested as an upper limit of cash holding.
It is suggested that in case any person or industry needs to hold more cash, it may obtain due permission from the area Commissioner of Income Tax.
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