SIT report on Black Money: 6 things you should know about it
The Special Investigation Team (SIT), headed by Justice MB Shah (retired), submitted its fifth report to Supreme Court on methods to curb black money in the economy.
The SIT has made the following recommendations in the Fifth Report
Complete ban should be imposed on cash transactions above Rs 3,00,000. There should be specific provision in the Act that transactions in cash above threshold limit shall be deemed as illegal, invalid and punishable under the law.
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')and the concerned Income–tax Department.
Maximum limit on cash holdings may be fixed between Rs.10 to 15 lacs. In any 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.
In addition, starting from the next year, all banks including co–operative banks be directed to notify any income or withdrawals of more than Rs.3,00,000 to the Directorate General of Income-tax (Investigation) Authorities of the State and to the FIU.
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 and assets would vest in the Union of India. Once it is held that under the law, property vests in Union of India, the person who is holding the said property outside the country shall have to prove that it was acquired legally and/or held after obtaining necessary permission from the RBI.
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.