The Special Investigation Team (SIT) that works on black money control operations has recommended the central government to cap the cash holding limit at Rs one crore instead of its earlier suggestion of Rs 20 lakh.
According to a report, the Justice (retired) M B Shah, who heads the SIT on black money, told PTI that the team has also recommended moving the entire found in seizures beyond that limit should go to the government treasury.
The recommendations have come after recent search raids in the country conducted by the income tax sleuths where huge amounts of cash were seized. On July 16, the search on over 20 premises of a firm engaged in highway construction and its associate companies in Tamil Nadu resulted in the seizure of Rs 160 crore cash and 100 kg of gold.
The huge amounts of cash being seized have the panel thinking that the Rs 20 limit will not work and there is a need to increase the limit.
Justice Shah had earlier suggested the cash holding limit to be at Rs 15 lakh and later revised it to Rs 20 lakh. His new recommendations include not only to increase the limit to Rs 1 crore but to seize the entire amount above the Rs 1 crore limit and give it to the government.
The existing rules allow the offenders to retrieve seized cash by paying 40 percent income tax and penalty. The SIT was formed by the central government in 2014 on directions of Supreme Court. The panel has been continuously suggesting anti-black money measures to the government.