Prabhakar K S
The Special Investigation Team (SIT), headed by Justice M.B. Shah (retd.), submitted its fifth report to Supreme Court on methods to curb black money in the economy
The SIT has made six recommendations in its Fifth Report:
1. Complete ban should be imposed on cash transactions above R. 3,00,000. There should be specific provision in the Act that cash transactions in cash above threshold limit shall be deemed as illegal, invalid and punishable under the law.
2. If there is cash withdrawal of more than Rs. 3,00,000 from any bank, then bank should consider it as a suspicious activity and should report it to Financial Intelligence Unit [FIU] & the concerned Income –Tax Department.
3. Maximum limit on cash holdings may be fixed between Rs. 10 Lakhs to 15 Lakhs. In case, if any person or industry requires to hold more cash, it may obtain necessary permission from the Commissioner of Income-Tax of the area.
4. In addition, starting from the next year, all banks including co-operative banks may be directed to notify any income or withdrawals of more than Rs. 3,00,000 to the Director General of Income Tax (Investigation ) Authorities of the State and to the FIU.
5. Appropriate steps may be taken for amending the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, by incorporating the provision that undisclosed foreign income & assets would vest in the Union of India.
6. 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.
The author is a Tax Law Professional who may be contacted at sritaxandcorporate@gmail.com
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