Promoting Digital Economy
162. The Special Investigation Team (SIT) set up by the
Government for black money has suggested that no
transaction above Rs.3 lakh should be permitted in cash.
The Government has decided to accept this proposal.
Suitable amendment to the Income-tax Act is proposed in
the Finance Bill for enforcing this decision.”
Extract from Memo of Finance Bill, 2017
“Restriction on cash transactions
In India, the quantum of domestic black money is huge
which adversely affects the revenue of the Government
creating are source crunch for its various welfare
programmes. Black money is generally transacted in cash
and large amount of unaccounted wealth is stored and
used in form of cash.