The Fifth SIT report has been submitted
before the Hon’ble Supreme Court by the SIT. An extract of the report has been
uploaded on Department of Revenue website www.dor.gov.in.
The SIT has made the following
recommendations in the Fifth Report:
Cash transactions : 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. Thus, the SIT has recommended that there should be
a total ban on cash transactions above Rs. 3, 00,000 and an Act be framed to
declare such transactions as illegal and punishable under law.
Cash holding :
The SIT has further felt that, given the fact of unaccounted wealth being held
in cash which are further confirmed by huge cash recoveries in numerous
enforcement actions by law enforcement agencies from time to time, the above
limit of cash transaction can only succeed if there is a limitation on cash
holding, as suggested in its previous reports. SIT has suggested an upper limit
of Rs. 15 lakhs on cash holding. Further, stating 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.
Suggestions are invited on the
above recommendations of SIT at sit_suggestions@nic.in
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AR/KA