Black money SIT for 3L bar on ` cash transactions Govt: Tax on black money will be 45%

Bilawal Bhutto calls up Mirwaiz Farooq, offers support Youth torch home where Wani died

The special investigation team ( SIT) on black money has recommended a “total ban” on cash transactions above ` 3 lakh and suggests a law be framed to declare cash transactions above this limit illegal and punishable.

It also seeks to restrict the maximum cash holding with individuals to ` 15 lakh to curb illegal wealth in the economy. If any person or industry needs to hold cash over ` 15 lakh, it may obtain necessary permission from the area’s commissioner of income tax.

The special investigation team, headed by Justice M. B. Shah ( Retd), submitted its fifth report to the Supreme Court on methods to curb black money in the economy.

The SIT recommends that if cash in excess of ` 3 lakh is withdrawn from New Delhi: The government clarified that the total tax and penalty under the amnesty scheme on domestic black money will be 45% after reports suggested that it would be 31%.

any bank, “then that bank should consider it as a suspicious activity and should report it to the Financial Intelligence Unit and Income- Tax Department”.

The special investigation team also recommends that the Black Money ( Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, be amended to allow property or assets in foreign countries bought by Indians using black money to vest with the Union of India.

The report of the special investigation team on black money, submitted to the Supreme Court, suggests that before investing any amount or purchasing any property abroad, the person must inform the concerned jurisdictional commissioner of Income Tax of the state. It says this should be made mandatory even if RBI permission is not required to invest or purchase the asset abroad. This step has been proposed because many individuals named in the recent Panama papers leak had claimed they had obtained RBI permission. However, such information was not given by the assessees to the income- tax authority. The report, part of which was out on the finance ministry website on Thursday, says a large amount of unaccounted wealth is stored and used in the 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 there is a need to put an upper limit to cash transactions,” says the report.