New Delhi: Keeping eye on black money transactions the Special Investigation Team (SIT) today recommended ban on cash transactions of over Rs 3 lakh and limiting cash investment with individuals to not more than of Rs 15 lakh to control illegal wealth in the economy.
Justice M B Shah (retired) who headed SIT bench has submitted its fifth report to the Supreme Court on methods to restrain black money in the economy.
The bench felt that a large amount of unaccounted assets is stored and used in cash form.
According to official statement, “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.”
The SIT suggested a complete ban on cash transactions above Rs 3 lakh and “an Act to be outlined to declare such transaction as illegal and punishable under law.”
The SIT has also suggested an upper limit of Rs 15 lakh on cash holding.