- Proposal to limit cash transactions given by a Special Investigation Team
- SIT set up by Supreme Court in an attempt to check black or untaxed money
- It is being considered a major step to check corruption and tax evasion
The SIT, headed by former judge MB Shah, has submitted five reports to the Supreme Court on steps needed to curb black money.
Noting that a large amount of unaccounted wealth is stored in cash, SIT had said: "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."
Mr Jaitley said the SIT had recommended a total ban on cash transactions of Rs 3 lakh and above and the government had decided to accept it.
In November, in a massive step to check black money, the government banned 500 and 1,000 rupee notes overnight.
After Prime Minister Narendra Modi announced the ban on 500 and 1,000-rupee notes in November, parties were allowed to deposit the abolished bills in banks without paying taxes.
A decades-old law exempts parties from taxes on a range of sources of income including donations by volunteers. Contributions of up to Rs 20,000 in cash did not have to be explained so far.
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.