New Delhi– In order to tackle black money, the Special Investigation Team (SIT) has recommended a total ban on cash transactions above Rs 300,000 and an act be framed to declare such transactions as illegal and punishable under law, an official statement said here on Thursday.

The fifth SIT report has been submitted before the Supreme Court by the SIT.

Supreme Court-India“The SIT has 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,” the statement said.

Regarding cash holding it said: “SIT has suggested an upper limit of Rs 15 lakhs on cash holding.”

Further, it said 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 has also invited suggestions from the public on the recommendations.