New regulation on cash transactions
Posted on: 16/Jul/2016 9:56:12 AM
The Special Enquiry Committee formed under the leadership of retired justice M P Shah, which was as per Supreme Court Order, submitted its 5th Report on its guidelines about restricting the circulation of black money. The highlights of the report:
Unaccounted money stacked and hidden as cash, is being used as black money. The committee has recommended an upper limit for cash transactions.
Any cash deal more than Rs. 5 Lakhs should be banned.A legislation should be passed that that cash exchange above Rs. 5 Lakhs is against the law and punishable.
As we observe that huge amount of black money are detected and caught, only fixing an upper limit for cash exchanges is the solution to implement the step against huge cash transactions.
Persons should not be allowed to keep more than Rs. 15 Lakhs in cash.
If an individual or a company wants to keep cash in excess of Rs. 15 Lakhs, they should obtain approval from the Income Tax Commissioner.
