SIT for ban on transactions above Rs 3 lakh

Also seeks Rs 15-lakh cap on individuals' cash holding

The Supreme Court-appointed Special Investigation Team (SIT) on black money has recommended a ban on cash transactions of above Rs 3 lakh.

It also sought restricting cash holding with individuals to not more than Rs 15 lakh to curb illegal wealth in the economy.

In its fifth report, the SIT headed by Justice (Retd) M B Shah listed out methods to curb black money. The panel felt that large amounts of unaccounted wealth is stored and used in the form of cash.

No need for upper limit

“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," an official statement said.

The panel was in favour of framing an act to declare transactions above Rs 3 lakh illegal and punishable under law.

The SIT also suggested fixing an upper limit of Rs 15 lakh on cash holding.  In case any person or industry required holding more cash, it may obtain necessary permission from the Commissioner of Income Tax of the area, the panel said.