In its effort to tackle black money, Special Investigation Team (SIT) has suggested complete ban on cash transactions above Rs 300,000 and an act be outlined to declare such transactions as illegal and punishable under law.
Report has been submitted before the Supreme Court by the SIT.
“The SIT has felt that large amount of unaccounted wealth is stored and used in form of 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,” the statement said in national capital.
It also said that in case any person or industry requires holding more cash, “it may obtain necessary permission from the Commissioner of Income tax of the area.”
It has also invited proposals from the public on the recommendations.