Photo: MintMumbai: In a step towards making India a cashless economy and curbing black money, the Supreme Court-constituted special investigation team (SIT) has recommended a ban on cash transactions above Rs.3 lakh. “The above limit of cash transaction can only succeed if there is a limitation on cash holding, as suggested in its previous reports. In its report made public on Thursday, the SIT has recommended that an Act be framed to declare cash transactions above Rs3 lakh illegal. If accepted by the government, both these measures could check cash transactions, ensure that there is a paper trail for every high-value transaction and consequently prevent tax evasion. It has also suggested capping the cash holding of an industry or individual at Rs.15 lakh.

Source: Mint July 14, 2016 12:45 UTC