HOME > BUSINESS > Govt considers banning cash transactions of 3 lakh and above

Govt considers banning cash transactions of 3 lakh and above

npciThe government is considering the recommendation of Special Investigation Team (SIT) on black money to ban cash transactions above Rs 3 lakh, a top Finance Ministry official said at an ASSOCHAM event held in New Delhi today.

“The SIT recommendations are under consideration. As far as the Income Tax Department is concerned, we have put a one per cent TCS (Tax Collected at Source) on cash transactions, we have made PAN quoting mandatory, all these aspects are also part of the SIT recommendation to stop the use of cash in the economy, Rs three lakh and above is under consideration,” said Ms Rani Singh Nair, chairperson, Central Board of Direct Taxes (CBDT) while inaugurating an ASSOCHAM International Tax Conference.

Banning of high value cash transactions as well as the withdrawal of high value currency notes such as those of Rs 500 and Rs 1000 have been suggested as effective ways to bring down corruption in the country.

India also took a major step towards becoming a transparent and cashless economy a few months ago when the Reserve Bank of India successfully set up the National Payments Coorporation of India.

Using NPCI’s infrastructure, it is today possible to transfer money instantly fro one bank account to another located in any other bank.

This had also led to the proliferation of payment apps on mobile platforms.

Nair also informed that the government is holding discussions for the renegotiated India-Singapore tax treaty.

“So now that we have renegotiated Mauritius, Singapore is under discussion. We are discussing it, we hope we will soon have a discussion with them as this is a bilateral treaty, so we have to take the concerns of both the countries and then we will sign,” said Ms Nair.

She said that during the course of past two years, endeavour of the government and the CBDT has been to facilitate investments into India to ensure that the taxpayer pays his taxes with the ease of doing business because ultimately the tax coffers will never be full if there is no business in India.

“For the last two years we have believed that participating in rule-making, law-making will help in making more robust tax laws and with this idea we have every time put all our major initiatives in the public domain and after seeing what people have said, we have even proposed amendments to facilitate the business. This change of thinking, this proactive approach has gone down very well both internally in the country and I can say that this is the way to move forward,” said Ms Nair.

She also said that role of the tax administration is not only limited to tax and it is also to listen and to guide the taxpayer and see that the advice given is correct.

“I have also felt that for international business, for foreigners who are coming to invest in India, we should have a kind of a guide available on the internet, in the market which tells step-by-step what are the tax laws, tax procedures and the way to go forward in doing business in India,” said the CBDT chairperson.

“I have had a lot of interactions with foreign business, with associations who have come to meet me in my stint in the CBDT and they all feel that they are adrift in India because there is not one place that they can go to and get advice and then they can digest that advice and take their own decisions,” she said.

“If we have to make India a place to do business, we have to have this kind of facility not only in the government but in the private space also, where any business which is coming to India comes with a lot of confidence, that the advise they get is complete and comprehensive. I think when we talk of international taxation, this is the one aspect that we need to focus on and we need to see that India becomes a favoured place of doing business,” further said Ms Nair.

On the issue of advancing the date of general budget presentation to January, she said that it will bring in more efficiency in the budget making as two-three months of the financial year will not be lost in the budget process.

Follow ULTRA.news
RBI fines Religare Finvest Rs 20 lakh The Reserve Bank of India has imposed a monetary penalty of ₹20 lakh on Religare Finvest for the failure to comply with the directions/orders issued by RBI on an assignment transaction."An inspection of the company was conducted under section 45N of the RBI Act, 1934 during ...
K Raheja Corp, GIC buys Siemens building in Worli for Rs 610 cr Capital equipment maker Siemens today said it has transferred its lease for its Worli building to a joint venture K. Raheja Corp Group and GIC, Singapore for a consideration of Rs 610 cr.The deal was originally announced in December and is one of the biggest land deals in In...
UPDATE: 99% of demonetized currency returned to govt Eight months on, the Reserve Bank of India is yet to finish verifying and counting the 500- and 1000-rupee notes surrendered by the public between Nov 8 and Dec 30, 2016, the finance ministry said in a statement on Aug 11.UPDATE: About ten days after this article was publishe...
Nawaz Sharif Proves Unlucky For The Third Time Nawaz Sharif is third time unlucky to have to abandon his term as the democratically elected Prime Minister of Pakistan.With the Supreme Court disqualifying him over the corruption cases for ten years, sixty-seven-year-old Sharif’s premiership comes to end one year before hi...
Demonetization took India forward by 3 years – SBI The demonetization of currency notes late last year has doubled the number of card transactions and helped push India's payment digitisation by three years, State Bank of India said in a note."Even after seven months post demonetization, the transaction value is quite large ...
Axis Bank says 8 NPA accounts fingered by RBI owes it Rs 5,283 cr Axis Bank said eight of the 12 big defaulters highlighted by the Reserve Bank of India in its June 15 circular owed over Rs 5,000 cr to the bank.The RBI had given a list of 12 large accounts which together owed about 25% of the total bad loans of Indian banks. The total bad l...
Demonetization hits real estate builder prices, but not resale flats – report Demonetization of 500- and 1000-rupee notes hurt the real estate sector in North India, while its impact on the sector in South India was negligible, according to Magicbricks’ PropIndex for Jan-March 2017.The report, brought out by the eponymous real estate classifieds site, ...
SBI says free ATM transactions not withdrawn India's largest bank, State Bank of India, denied reports that it had scrapped the facility of providing free ATM transactions.SBI CIRCULARThe bank was responding to media reports that said that all transactions will be chargeable from now on.Under the Reserve Bank o...
Kapil Mishra to file FIR against Arvind Kejriwal Estranged Aam Aadmi Party leader Kapil Mishra said he will file a police complaint against Arvind Kejriwal today.The rebel AAP leader has accused the party supremo of taking bribes and acting like a dictator within the party."It is with a heavy heart that I am doing this,...
Supreme Court dismisses Center’s reasons for not appointing Lokpal The Supreme Court has dismissed the government of India's stand that it cannot appoint the Lokpal as there was no leader of the opposition.The court's decision came on a bunch of petitions seeking the appointment of a Lokpal is likely to lead to the first ever appointment...
Mayank Gandhi delivers scathing message to Arvind Kejriwal From the video message of Mayank GandhiFormer compatriot and head of Aam Aadmi Party Maharashtra, Mayank Gandhi has assailed Arvind Kejriwal in an acerbic letter that traces the AAP leader's rise and fall over the last five years.Gandhi, who left the organization after fou...
Glaucus questions stock price of Hong Kong-listed Fullshare Holdings Ltd Glaucus Research Group, a California-based short seller, said it was selling Hong Kong-listed developer Fullshare Holdings due to peculiar trading patterns seen in the stock's counter."Fullshare is supposedly a commercial and residential property developer, but this business ...
There’s no Lokpal because there’s no opposition leader, says govt Lokpal act was passed after massive demonstrations in 2013The Prime Minister's office today said the government has not appointed a Lokpal at the center yet as there is no leader of the opposition in the Lok Sabha.According to the Lokpal and Lokayuktas Act passed in 2013...
Nearly a quarter of all food samples tested found fake or adulterated Food Adulteration and Testing in India, FY16Over one-fifth of all food samples tested in India's government labs in the last year were found to be fake or adulterated, according to numbers compiled from various state government food testing facilities by union government's d...
RBI refuses to make exceptions for Tirupati temple, Rs 4 cr old notes junked The Tirumalai TempleThe Reserve Bank of India has told the management of Tirumala Tirupati temple in Andhra Pradesh that the money deposited in the temple's hundis cannot be exchanged for new notes.The move was in response to a letter by the temple management asking if i...
No exemption to Tamil Nadu on NEET: Health Minister Health Minister Faggan Singh Kulaste at an event in DelhiExemptions to the National Eligibility cum Entrance Test cannot be given to any place or zones inside India as a common entrance test is required under the law, Faggan Singh Kulaste, junior minister in charge of health...
PNB, Corp Bank most aggressive in going after big debtors; SBI, BoB more relaxed Punjab National Bank, the third largest public sector bank in India, and smaller cousin Corporation Bank can teach bigger siblings like State Bank of India and Bank of Baroda a thing or two about going after big loan defaulters, an analysis of Reserve Bank of India data shows. ...
Narada sting operation probe handed over to CBI The Calcutta High Court has handed over the investigation into the sting operation conducted by 'Narada News' to the Central Bureau of Investigation.The agency has been told to complete a preliminary investigation within 72 hours.The move follows complaints that the state...
NDA-ruled states lead in digitization of public distribution systems States ruled by the National Democratic Alliance have taken the lead in implementing digital ration shops with the introduction of electronic point of sale machines, while non-NDA states have lagged behind in introducing this crucial anti-pilferage measure, data obtained from the...
Anti-corruption activists to conduct ‘Ghotala Yatra’ in Delhi on Thursday An umbrella group of anti-corruption groups will conduct a 'Ghotala Yatra' or 'Scam Procession' at Delhi's Mandi House area tomorrow.The rally, with the cry 'freedom from corruption' will start at 11 AM and be followed by a sitting protest at Jantar Mantar -- the traditional ...