Banning cash deals over Rs 3 lakh under consideration: CBDT

New Delhi, Aug 23 (PTI) Government is examining SIT’srecommendation of banning cash transactions of over Rs 3 lakhin a bid to clamp down on black money in the economy, CBDTChairperson Rani Singh Nair said today. The move follows Supreme Court-appointed SpecialInvestigation Team (SIT) on black money recommending banningcash transactions of Rs 3 lakh and above and restricting cashholding with individuals and industry to Rs 15 lakh to curbillegal wealth in the country. "These recommendations have come. It (banning cashtransactions over Rs 3 lakh) is under examination. SITrecommendations are under consideration," she told reporterson the sidelines of an Assocham event here. The Income Tax Department, she said, has already put a 1per cent TCS on cash transactions and made quoting of PANmandatory. "All these aspects are part of SIT recommendations tostop use of cash in the economy. Suggestion on Rs 3 lakh andabove is under consideration," she said. The SIT, headed by Justice M B Shah (retired), last monthsubmitted its fifth report to the Supreme Court on stepsneeded to curb black money. Noting that a large amount of unaccounted wealth isstored in cash, the SIT said: "Having considered theprovisions which exist in this regard in various countries andalso having considered various reports and observations ofcourts regarding cash transactions, the SIT felt that there isa need to put an upper limit to cash transactions." It recommended a total ban on cash transactions of Rs 3lakh and above and that "an Act be framed to declare suchtransactions as illegal and punishable under law". Suggesting an upper limit of Rs 15 lakh on cash holding,SIT had stated that special permission of the Commissioner ofIncome Tax of the area should be taken in this regard. PTI JDARD