The move has been made to rein in black money in the system. The Central Board of Direct Taxes (CBDT) has said that it is considering a proposal put forth by the SIT to put a ban on cash transactions above Rs 3 lakh. A ban on cash transactions above Rs 3 lakh will ensure that citizens use cheque books or credit/ debit cards, which will make the money traceable in the system. It (banning cash transactions over Rs 3 lakh) is under examination. SIT recommendations are under consideration," CBDT chairperson Rani Singh Nair said at an Assocham event on Tuesday.

Source: dna August 23, 2016 06:18 UTC