Govt to ban cash transactions over Rs 3 lakh?

August 22, 2016

New Delhi, Aug 22: The government is set to ban cash transactions over Rs 3 lakh as it seeks to clamp down on black money in the economy following recommendations from the Supreme Court-appointed Special Investigation Team.

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The government, however, is yet to decide on the SIT's other proposal to bar cash holdings over Rs 15 lakh due to opposition from trade and industry, sources said. "There are concerns that this will result in harassment by tax officials," an officer said.

The Rs 3 lakh-limit is aimed to ensure that transactions are made using credit or debit cards, cheques or drafts which can be easily tracked. Despite the crackdown on unaccounted money, authorities continue to unearth several transactions involving purchase of jewellery or even cars in all-cash deals.

The finance ministry is also trying to promote use of plastic money and recently did away with transaction charges+ for government services. In the past, businesses have cited payments to workers, especially smaller players, to justify large cash holdings. But the argument is seen to have become weak in the wake of a spurt in number of bank accounts, especially after Jan Dhan was launched two years ago.

The government has already initiated several steps, including banning cash advance of more than Rs 20,000 for property transactions. The move came after income tax raids revealed unaccounted cash was often attributed to "recently concluded property transactions". A similar limit has been placed on repayment of bank loans. The SIT had suggested the twin moves citing examples of countries such as France and Italy, that allow transactions up to a certain limit.

The panel argued that cash transactions of over Rs 20,000 were rampant and often tax was not being deducted at source as prescribed under the law. "Question of levying penalty will arise only when such transaction comes to knowledge of I-T department because it is difficult to find out or locate the same," the SIT said in its report.

Comments

SK
 - 
Monday, 22 Aug 2016

Arvind Delhi....well said... Even Santosh Hegde does not speak on such matters.... He closes his eyes on such issues.....

Rikaz
 - 
Monday, 22 Aug 2016

Good job! It can reduce cow trafficking by Sangh Pariwars in considerable amount....3 lakhs is too much, that should be reduced to Rs. 20,000

PK
 - 
Monday, 22 Aug 2016

Only in media... cheddis never bring it. it will effect . Same stories like 15 lakhs?

SK
 - 
Monday, 22 Aug 2016

why 3 laks.... make it 50,000.....It seems that sanghis have lot of black money and so they are giving more and more time to make it black.....

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News Network
May 12,2024

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Mangaluru: A native of Kerala was arrested on charge of misbehaving with crew on an Air India Express flight while travelling from Dubai to Mangaluru International Airport. The man even threatened to jump from the aircraft, according to officials. 

Siddartha Das, the security coordinator for Air India Express, lodged a complaint against the passenger, identified as Muhammad BC from Kannur, Kerala, after which he was caught by the airport security once the flight landed at Mangaluru. He was later handed over to the police.

DCP (Law and Order) Sidharth Goyal said the incident occurred on Flight IX814 on May 8.

When the flight was above the sea, Muhammad reportedly said he wanted to get off the plane, posing a threat to all on board. The unruly flyer was detained by airport security once the flight landed at Mangaluru International Airport and he was handed over to Bajpe police station officials.

Sources added once the flight took off from Dubai, the accused went to the lavatory and thereafter started inquiring with the cabin crew about a person named Krishna who was not on the flight. Muhammad kept on pressing the bell for in-flight assistance, even though the cabin crew members were near at hand. He then picked up a life jacket, gave it to a crew member, and said he wanted to use it upon landing.

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News Network
May 19,2024

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Mangaluru: Disgruntled BJP leader and former MLA K Raghupathi Bhat, who is contesting the legislative council election as an independent candidate from the South West Graduates constituency, said the BJP has adopted the “godfather culture” of the Congress.

Bhat told reporters here on Saturday, that he has not tried to appease any senior BJP leaders to get a party ticket to contest the MLC poll.

“I am contesting and seeking votes based on my achievements. My contesting may have a negative impact on the BJP. However, I want to go back to the BJP after winning this election,” Bhat said, and refused to answer the actual reason for the denial of a BJP ticket to him.

“I have no idea who played from behind that I was denied a ticket for the MLC poll.

Earlier, the BJP had a culture of selecting candidates for MLA and MLC polls by seeking the opinion of party workers at the booth level, followed by discussions at mandal and district levels.

Now the situation is such that even if one person’s name was sent from the state, the final list will be different. The godfather culture of the Congress has stretched into our party too. Only those who appease leaders get a ticket in the BJP. However, I have not appeased any leader. I believe in the support of party workers, and with this confidence I am contesting the election,” Bhat said.

To a query, Bhat said that he has not contacted by BJP leaders after deciding to contest the MLC poll.

“I have already requested all leaders that I should get the party’s Form B to contest the MLC poll from the South West Graduates constituency. I have told them that I am also contesting as an independent candidate on behalf of the BJP. The ultimate aim of my contesting the election is that senior leaders should know the injustice that honest party workers are facing in the BJP,” he said.

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News Network
May 7,2024

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Israeli military aircraft have heavily bombed the city of Rafah in the southern Gaza Strip accompanied with ground advances shortly after the Palestinian resistance movement Hamas said it had agreed to a proposal on ceasefire in Gaza.

A Palestinian journalist reported flares in the night sky, while locals said dozens of reconnaissance drones flew overhead.

The official Palestinian news agency Wafa and Egyptian media said Israeli military vehicles advanced towards the Palestinian side of the Rafah crossing with Egypt, as well as the Karem Shalom crossing with the Israeli-occupied territories.

A Palestinian security official and an Egyptian authority have told the Associated Press news agency that Israeli tanks have entered Rafah, reaching as close as 200 meters from Rafah’s border crossing with neighboring Egypt.

The Israeli military has said it was conducting “targeted strikes” against Hamas in eastern Rafah.

Israeli prime minister Benjamin Netanyahu's office has also said "Israel is continuing the operation in Rafah to exert military pressure on Hamas" in order to advance the release of captives and what it called "the other objectives of the war."

In the meantime, it described the proposal on ceasefire as "far from Israel's essential demands," but added that it would send negotiators for talks "to exhaust the potential for arriving at an agreement."

The military strikes on Rafah came ahead of talks in Egypt on Tuesday aimed at sealing a truce proposal accepted by Hamas, which was put forward by Qatari and Egyptian mediators. 

According to a copy of the proposal, there will be three phases to ending Israel’s onslaught against Gaza.

The first phase calls for a complete withdrawal of Israeli troops from the Netzarim corridor and the return of displaced Palestinians to their homes. The second phase involves an announcement of a permanent cessation of military operations. In the last phase, there would be a complete end to the blockade of the Gaza Strip. 

In return, Israel would be required to release an unspecified number of Palestinian prisoners, withdraw its troops from certain regions of the Gaza Strip, and allow Palestinians to travel from the south of the coastal sliver to the north.

About 1.5 million Palestinians are sheltering in Rafah, once designated a “safe zone” by the Israeli military. Palestinians are now struggling to evacuate the city, after the Israeli military dropped leaflets ordering them to leave as a large-scale assault on the city is planned.

UN Secretary General Antonio Guterres has said that a ground invasion of Rafah would be “intolerable” and called on Israel and Hamas “to go an extra mile” to reach a truce deal.

“This is an opportunity that cannot be missed, and a ground invasion in Rafah would be intolerable because of its devastating humanitarian consequences, and because of its destabilizing impact in the region,” Guterres told reporters on Monday ahead of a meeting with Italian President Sergio Mattarella in New York.

Jordanian Foreign Minister Ayman Safadi has also warned that Israel is “jeopardizing the deal by bombing Rafah.”

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