Five recommendations by SIT to curb black money
The SIT report said that it felt that large amount of unaccounted wealth is stored and used in form of cash.
The Special Investigation Team (SIT) has recommended a ban on cash transactions above Rs 3 lakh. It recommended an Act be framed to declare such transactions as illegal and punishable by law.
The SIT also suggested imposing an upper limit of Rs 15 lakh on cash holding. In the case of any person or industry requires to hold more cash, it may obtain the necessary permission from the Commissioner of Income Tax of the area.
The SIT report said that it 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 SIT headed by Justice M B Shah (retd), submitted its fifth report to the Supreme Court on methods to curb black money in the economy.
Some of the other recommendations of the SIT report include:
1. Disclosure of investment or purchases of assets outside the country to IT department: SIT suggested amending the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, by incorporating the provision that "undisclosed foreign income and assets would vest in the Union of India".
It suggested that before investing any amount or purchasing any property outside the country, the assessee must inform the concerned jurisdictional Commissioner of Income Tax Department of the State.
2. Withdrawal of Rs 3 lakh suspicious activity: Cash withdrawal of more than Rs 3 lakh from any bank account in a day should consider as a suspicious activity and the concerned bank should report it to Financial Intelligence Unit (FIU) & the concerned Income Tax Department
3. Mode of accepting loans, deposits: It has recommended that it should be through cheque, demand draft or net banking.
4. All banks be notified about withdrawal limit: The SIT report said that starting from the next year, all banks including co–operative banks be directed to notify any income or withdrawals of more than Rs 3 lakh to the Directorate General of Income Tax (investigation) Authorities of the State and to the FIU.
5. Amendment in the Black Money Act: In the Additional Fourth Report (January, 2016), the SIT suggested to amend the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The amendment will be that any undisclosed money and immovable property during the Black Money Act will now be transferred to the Government of India.
Watch video of Zee Business news report here:
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.