The Supreme Court-appointed Special Investigating Team on black money has come out with a slew of recommendations to curb various ways of money laundering, including misuse of exemption on long-term capital gains tax, Participatory Notes and creation of shell companies. SIT has advocated action under anti-money laundering law for trade-based money laundering, putting a cap on huge cash transactions, as these mostly take place in illegal activities like drug trade and betting deals.
In its report submitted to the apex court, the SIT said there was a need to check the generation of black money in the education sector and through donations to religious institutions and charities.
The SIT has emphasised the need for establishing additional courts to decide the pending cases under the Income Tax Act, establishment of Central KYC Registry and empowering the Directorate of Revenue Intelligence under the Special Economic Zone Act.
A specific recommendation has been made to check generation of black money through cricket betting.