Ban cash transactions of above Rs 3 lakh to curb black money: SIT

[prasad1]

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The Special Investigation Team (SIT) on black money has recommended ban on cash transactions of above Rs 3 lakh and restricting cash holding with individuals to not more than Rs 15 lakh to curb illegal wealth in the economy.

The SIT headed by Justice M B Shah (retd), submitted its fifth report to the Supreme Court on methods to curb black money in the economy.

The panel felt that large amount of unaccounted wealth is stored and used in form of cash.

"Having considered the provisions which exist in this regard in various countries and also having considered various reports and observations of courts regarding cash transactions the SIT felt that there is a need to put an upper limit to cash transactions," an official statement said.
SIT recommended a total ban on cash transactions above Rs 3 lakh and "an Act be framed to declare such transactions as illegal and punishable under law."



It also felt that, given the fact of unaccounted wealth being held in cash which are further confirmed by huge cash recoveries in numerous enforcement actions by law enforcement agencies from time to time, the cash transaction limit can only succeed if there is a limitation on cash holding.
"SIT has suggested an upper limit of Rs 15 lakh on cash holding," the statement said.



In case any person or industry required holding more cash, it may obtain necessary permission from the Commissioner of Income Tax of the area, the panel opined.
http://timesofindia.indiatimes.com/business/india-business/Ban-cash-transactions-of-above-Rs-3-lakh-to-curb-black-money-SIT/articleshow/53211002.cms

 

[biswa]

This is easy to implement right? The banks, including RBI should just not permit large cash withdrawals.

 

[krish44]

90% of transactions in india are cash.

All these attempts are doomed for failure.

Govt needs to be facilitator for growth not hindrance thru black money hunts.

Many sectors like housing , small and medium scale industries are in doldrums.

No sense in further crippling them thru foolish actions.

Govt should stay out of business instead of adding to worries of businessmen.

RBI by its action has already brought all borrowings to a halt by sqyueezing PSU banks.

All businessmen are not starting anything new.

They are just waiting it out for the demise of present dispensation.

 

[V.Balasubramani]

Support ban on cash transactions above Rs 3 lakh: Ashvin Parekh

Financial services expert Ashvin Parikh told CNBC-TV-18 that the SIT’s approach is valid.

He questioned the ability to carry cash in the present day when robust systems for cash transfers like RGTS and NEFT are available.

The Special Investigation Team (SIT) on black money has recommended ban on cash transactions of above Rs 3 lakh and restricting cash holding with individuals to not more than Rs 15 lakh to curb illegal wealth in the economy. Financial services expert Ashvin Parekh told CNBC-TV-18 that the SIT’s approach is valid.

He questioned the ability to carry cash in the present day when robust systems for cash transfers like RGTS and NEFT are available. If he were the government, he would accept SIT recommendations, he said.

Read more at: http://www.moneycontrol.com/news/ec...in-parekh_7039221.html?utm_source=ref_article

 

[krish44]

Our Govt has been elected to facilitate good living for all.

It should collect minimal taxes to just to support it staff and some welfare activities .

Minimal govt with ease for all to pursue their business with no hurdles will spur growth.

govt should stop playing big brother and stop snooping on wealth of people .

people are not their enemies.

The politicians have been elected to facilitate living of its citizens.

That is possible only if stops snooping on people and people feel free to do their business.

The black money hunts will lead govt now where.

People are looking for decent economic performance thru good govt.

Thats possible only with minimal intervenetion from govt.

 

[krish44]

Rupee has been artificially supported by the exiting RBI governor by pumping huge number of dollars into the market.

Once he leaves, rupee which is over valued will go to 69 or 70 to the dollar.

That will spur exports -including IT ,jewellery, textiles.

Results of infosys [which crashed 10% on last quarter results], TCs [which showed slightly better numbers because of arbitrage value of foreign currency]will

improve.Pharma will do well.

The money squeeze is hurting the markets.

No one is buying houses. The industry is in recession . Discounts are getting offered.

Govt does not need to collect more taxes to damage the economy thru their thoughtless actions.

Rural sector is simply going downhill. If onions growers get paid 3rs a kilo,Harvests are rotting due to unattractive procurement prices,pulses are getting hoarded that

somalia has to bail us out .

Govt does not have the talent to govern. They can simply not intervene anywhere. India has the power to grow if left free by the govt.

 

[V.Balasubramani]

Ban On Cash Transactions Above 3 Lakhs To Be Considered By Government

Excerpts

So far, the committee's recommendations have been carefully evaluated and implemented by the government. This has included offering a four-month compliance window which ends in September and offers citizens the opportunity to reveal undisclosed income from any sort of asset and escape criminal action. The disclosures are taxed at 45% of their value.

In the monsoon session of parliament, which starts on Monday, the government will asklaw-makers to approve changes to a 1988 law that defines benami or proxy-owned assetsespecially property and will provide upto seven years in jail along with a stiff fine for thosefound guilty.

In May, market regulator SEBI strengthened the rules for P-notes to improve transparencyand check money laundering through stocks. Participatory ("P") Notes allow foreigninvestors to buy Indian stocks. The new norms require the registration with SEBI of theseOffshore Derivative Instruments used by foreign investors to invest in the domestic stockmarket, and the beneficiaries have to be identified and verified to help detect illegal moneyflowing into the country.

The government has also said it will start imposing capital gains tax on investments coming from Mauritius starting next year in an attempt to stop "round tripping" or the return to India of wealth that has not been accounted for by routing it through countries that provide easy channeling of funds without too many questions.

Source: http://www.ndtv.com/india-news/ban-...kh-to-curb-black-money-top-court-told-1431507





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[biswa]

Krishji, why are so pro black money? Do you have a stash yourself?

90% of transactions in india are cash.

All these attempts are doomed for failure.

Govt needs to be facilitator for growth not hindrance thru black money hunts.

Many sectors like housing , small and medium scale industries are in doldrums.

No sense in further crippling them thru foolish actions.

Govt should stay out of business instead of adding to worries of businessmen.

RBI by its action has already brought all borrowings to a halt by sqyueezing PSU banks.

All businessmen are not starting anything new.

They are just waiting it out for the demise of present dispensation.

 

[krish44]

Krishji, why are so pro black money? Do you have a stash yourself?

Biswaji

I wish I had.

We are all ex govt types with regular income.

When govt simply gets into loops chasing black money and not solve other issues facing the economy , it is disgusting.

When I buy milk ,vegetables and provisions, I cannot be insisting on receipts.

Kirana merchants who roll over money mostly cash , cannot be billing everybody.

When one buys consumer durables the shop fellow wants to know whether you want cash memo to decide the final price.

In every facet of life if it is cash,is it worth chasing the elusive black money.?

 

[GANESH65]

Well, I think transactions with Milk or Kirana vendor in cash won't be a big issue even if the proposal is implemented as a limit of 3 lac is there. Real estate and Gold are the big fishes. No body wants to stack black money in currency. so they invest in these two forms. The proposals, if implemented is going to hit these two markets in a big way. real estates which is already facing a slump would definitely go down further. Another major advantage of this proposal would be control over counterfeit currencies. As per many reports the circulation of counterfeit currency in India is more than 7000 plus crore.

 

[krish44]

Well, I think transactions with Milk or Kirana vendor in cash won't be a big issue even if the proposal is implemented as a limit of 3 lac is there. Real estate and Gold are the big fishes. No body wants to stack black money in currency. so they invest in these two forms. The proposals, if implemented is going to hit these two markets in a big way. real estates which is already facing a slump would definitely go down further. Another major advantage of this proposal would be control over counterfeit currencies. As per many reports the circulation of counterfeit currency in India is more than 7000 plus crore.

Delhi govt has warned kirana traders to voluntarily declare turnover and pay VAT.

The banias governing delhi know how bania kirana merchants work.

These shopkeeper opposite my place have flat,car and his children holiday abroad.

They are far richer than salaried employees.

Think of the numbers in kirana trade in india and work out the multiplication factor.

I agree gold, real estate and currency in other forms constitute a major chunk.

Those with these assets have the clout to take care of themselves.

most have good chartered accountants helping them.

Human mind is ingeneous.

It will find a way out of every situation.

 

[V.Balasubramani]

Getting receipts from Milk, Vegetable and provision stores which are run by private vendors...?????

In Tamil Nadu, more particularly at Chennai, there are hundreds of TASMAC outlets doing hefty business every day. One can see the counter at any point of time, with more number of customers thronging in and I don't think they issue any receipts to the customers for the purchases they make.

Even the elite shops located at most of the Malls, I think, don't issue receipts to the customers. But I heard that they are charging more than the MRP.

TASMAC is owned by State Government and its books of accounts are liable to be audited by the A.G and others concerned.

 

[mkrishna100]

As per many reports the circulation of counterfeit currency in India is more than 7000 plus crore.

A friend of mine who was associated with the Congress Party couple of decades back said that during Elections not just black money but also fake money will be circulated and that is why parties are very generous when it comes to doling out currency notes ( fake currency notes mixed with black currency notes ) during elections to its cadres and general public .

 

[auh]

I think only registered firms/companies that are subject to audit would face an issue by this "tuqlakian" order. Even then there are avenues to evade - jewellery shops have a practice of issuing a bill with tax only if the customer requires, else it is just a calculation of the amount or estimate on a piece of paper. Even for furniture, I have seen this happen. Only fair to assume that there is a great deal of "black" money that cannot be separated from the system.

When I went to audit, during my studying days, a hospital (a well known one in coimbatore), we would find that the actual cash balance would be negative on several occasions. Our job was just to observe; the negatives obviously came from no. 2 cash. The books would be adjusted later.

One of the simplest things that businesses would do is to split up payments.

 

[tbs]

I think only registered firms/companies that are subject to audit would face an issue by this "tuqlakian" order. Even then there are avenues to evade - jewellery shops have a practice of issuing a bill with tax only if the customer requires, else it is just a calculation of the amount or estimate on a piece of paper. Even for furniture, I have seen this happen. Only fair to assume that there is a great deal of "black" money that cannot be separated from the system.

When I went to audit, during my studying days, a hospital (a well known one in coimbatore), we would find that the actual cash balance would be negative on several occasions. Our job was just to observe; the negatives obviously came from no. 2 cash. The books would be adjusted later.

One of the simplest things that businesses would do is to split up payments.

hi

splits income also....my maternal grand uncle had hotel business in chennai some 40 yrs back.....nice income...no tax...

the same way...income from agricultural in our agraharam.....tax free benefits....