SIT suggests raising cash holding limit to Rs1 cr: report
19 July 2018
The Special Investigation Team (SIT) constituted to inquire into the black money trail and recommend measures to check the evil has suggested that the central government cap cash holding limit at Rs1 crore instead of its earlier suggestion of Rs20 lakh.
The SIT has also recommended that the entire amount found in seizures crossing that limit should go to the government treasury, PTI quoted Justice (retired) M B Shah, who heads the SIT on black money, as saying.
Earlier the SIT had suggested that cash holding limits of Rs15 lakh and Rs20 lakh are too low. “We have recommended that the cap on cash holding should be Rs1 crore. We have also recommended that the entire amount seized above the cash holding limit of Rs1 crore should go to the government,” Justice Shah said.
Persons violating the rules will have to pay 40 per cent of the amount as income tax and an additional penalty. The recommendations have come after huge amounts of cash were seized in recent search operations by tax authorities in the country.
Income Tax sleuths had on 16 July searched over 20 premises of a firm engaged in highway construction and its associate companies in Tamil Nadu and seized Rs160 crore cash and 100 kg of gold.
“Look at the amount of cash that is being seized, Rs 160 crore... Rs 177 crore...,” Justice Shah said. “The amount of money being seized is so high that now we are of the opinion that Rs 20lakh limit will not do,” he said.
The SIT was formed by the central government in 2014 on directions of Supreme Court. The panel has been continuously suggesting anti-black money measures to the government.