In a bid to curb black money flow in the country and abroad, the Government is planning to ban the cash transaction of over Rs 3 lakh. The move comes at a time when the Government making its all out efforts to crack down unaccounted wealth in the country.
“The Government is examining Special Investigation Team’s (SIT’s) recommendation of banning cash transactions of over Rs 3 lakh in a bid to clamp down on black money in the economy”, CBDT Chairperson Rani Singh Nair said on Tuesday.
The step of the Government follows Supreme Court-appointed SIT on black money recommending banning cash transactions of Rs 3 lakh and above and restricting cash holding with individuals and industry to Rs 15 lakh to curb illegal wealth in the country.
“These recommendations have come. It (banning cash transactions over Rs 3 lakh) is under examination. And the SIT recommendations are under consideration,” she told reporters on the sidelines of an Assocham event here.
The Income Tax Department, she said, has already put a 1 per cent TCS on cash transactions and made quoting of PAN mandatory.