Centre To Ban Cash Transactions Over Rs.3 Lakh

New Delhi: To put a check on black money in the country, Narendra Modi-led NDA Government has decided to ban the cash transactions over Rs 3 lakh. The government has received the recommendations from the Special Investigation Team (SIT) appointed by the Supreme Court. The government has not yet decided whether to bar cash holdings of more than Rs 15 lakh, as proposed by SIT, owing to the opposition from trade and industry. However, the latest proposals made by SIT are creating concerns that this will result in harassment by tax officials.

The banning of cash deals over Rs 3 lakh will also encourage practice of plastic money or digital currency in the country. If the 3-lakh limit is imposed, the government officials can easily track down the transactions made using debit or credit card, cash or cheque. The government authorities have been coming across all cash transaction on purchase of jewellery or even car deals even after the crackdown on the unaccounted money.

The government has not yet decided whether to bar cash holdings of more than Rs 15 lakh, as proposed by SIT, owing to the opposition from trade and industry. However, the latest proposals made by SIT are creating concerns that this will result in harassment by tax officials.

Since the Jan Dhan Yojna was launched two years ago, the number of bank accounts have squirted. Now, businessmen will have no excuse in payments making via banks. Until now, businessmen cite the reason for holding huge cash for making payments to employees. To promote the plastic money among people, the finance ministry recently did away with the charges for the transaction for government services.

The NDA government is making numerous efforts to keep tabs on black money practices in the country. One of these measures includes the ban on cash advance of over Rs 20,000. The move came after I-T raids revealed the attribution of unaccounted cash to recently concluded property transactions. The government has also imposed a cap on bank loans.