Indo-Asian News Service
New Delhi, July 14: In order to tackle black money, the Special Investigation Team (SIT) has recommended a total ban on cash transactions above Rs 300,000 and an act be framed to declare such transactions as illegal and punishable under law, an official statement said here Thursday. The fifth SIT 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. Regarding cash holding it said: “SIT has suggested an upper limit of Rs 15 lakh on cash holding.” Further, it said 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 suggestions from the public on the recommendations. Meanwhile, Centre Thursday allowed payment of tax and penalty in instalments over an extended period for the black money disclosed under the one-time compliance scheme, debunking certain assumptions that the effective tax rate could work out to be 31 per cent, much lower than mooted.
The Income Declaration Scheme (IDS), which gives holders of undeclared wealth a chance to come clean by paying tax, surcharge and penalty of 45 per cent and escape punishment, had earlier provided two month’s time after the close of declaration window on September 30 this year for payment of dues. Now, the government has allowed payment of dues in three instalments by September 30, 2017. The first instalment of 25 per cent of the total tax, surcharge and penalty due will have to be paid by November 30, 2016, followed by a second tranche of an equivalent amount by March 31, 2017. The remaining 50 per cent will have to be paid by September 30, 2017, a finance ministry statement said.