Skip to main content

Govt mulls ban on cash deals of over Rs. 3 lakh: CBDT chief

By
The government is examining a recommendation by the special investigation team ( SIT) to ban cash transactions of over ? 3 lakh to clamp down on black money, the top Central Board of Direct Taxes ( CBDT) official said on Tuesday.
Addressing an Assocham event, CBDT Chairperson Rani Singh Nair also favoured the proposal to advance the presentation of Union Budget to January, saying it will bring in “ more efficiency” as the public expenditure will start from first day of the financial year. A key international tax official also said India- Singapore tax treaty would be broadly on the same lines as that with Mauritius, though there could be some minor differences.
On banning cash transactions of over ? 3 lakh, Nair said, “ SIT recommendations are under consideration.” The income- tax department, she said, has already put a one per cent tax, to be collected at source (TCS), on cash transactions of over ? 2 lakh. Quoting PAN is also mandatory for any mode of payment. “ All these aspects are part of SIT recommendations to stop use of cash in the economy,” she said.
CBDT had earlier clarified that no tax would be collected at source when cash component of the payment for goods and services is less than ? 2 lakh even if the total consideration is more than this amount.
The SIT, headed by retired judge MB Shah, last month submitted its fifth report to the Supreme Court on steps needed to curb black money.
Noting that a large amount of unaccounted wealth is stored in cash, the SIT said: “ 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.” It recommended atotal ban on cash transactions of ? 3 lakh and above and that “an Act be framed to declare such transactions as illegal and punishable under law”.
SIT had also suggested an upper limit of ? 15 lakh on cash holding. In case any person or industry requires holding more cash, it may obtain necessary permission from the Commissioner of Income Tax of the area, it had recommended.
Nair said: “ There has been a change in the mindset of young people...These young people don’t want to hoard money any more, something that has to be done if it is black.
If they have money, they want to flaunt it. This is a change from the previous mindset of people hoarding black money.”
Business Standard New Delhi,24th August 2016

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more