New Set of Draft RTI Rules issued by Government - 2017

New Set of Draft RTI Rules issued by Government - 2017

No. 1/5/2016-IR

Govt. of India

Ministry of Personnel, Public Grievances & Pensions

Department of Personnel & Training

North Block, New Delhi

Dated the 31st March, 2017

CIRCULAR

Subject:- Framing RTI Rules, 2017 in supersession of RTI Rules, 2012 — comments regarding.

A proposal for making Rules under RTI i.e. RTI Rules, 2017 in supersession of RTI Rules, 2012-by the Central Government under section 27 of the RTI Act, 2005, is under consideration of the Department of Personnel & Training.

2. A copy of draft RTI Rules, 2017 in this regard is enclosed at Annexure-I.

3.It has been decided to invite views / suggestions of the concerned stakeholders on the draft RTI Rules, 2017. The views / suggestions may be sent latest by 15th  April, 2017 through e-mail only to Ms. Preeti Khanna, Under Secretary (RTI), North Block at email ID usrti-doptnic.in.

(Gayatri isftra)

Encl. As above.

Joint Secretary (IR)

Tele: 2309 2755

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Cash Transactions Verification of Taxpayers under SOP - CBDT

Recently, CBDT has issued Standard Operating Procedure (SOP) to the followed by the Assessing Officers in verification of Cash Transaction relating to demonetisation.

Post Demonetisation of Rs. 500 and Rs. 1000 notes on November 8, 2016 several malpractices has been noticed.  The Income Tax Department is enquiring/seeking information and analysing instances of deposits to identify cases involving risk of tax evasion.  Based upon vast amount of information of cash deposits collected and analysed by CBDT, a number of persons have been identified in those case the cash transactions did not appear to be in line with their profile available with the Income-Tax Department (ITD).  In such cases, it has been decided to undertake on-line verification of select transcations through jurisdictional Assessing Officers (AOs).

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IT Department's Operation Clean Money - Press Release

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 13th February, 2017.

PRESS RELEASE

Income Tax Department’s Operation Clean Money gets Overwhelming Response

The Income Tax Department (ITD) had initiated ‘Operation Clean Money’ on 31st January, 2017 for the e-verification of large cash deposits made during 9th November to 30th December, 2016. Email and SMS were sent to 18 lakh taxpayers for submitting online response on the e-filing portal.

The operation has seen an overwhelming response and till 12th February, 2017 more than 5.27 Lakh taxpayers have already submitted their response. Out of the 7.41 Lakh accounts confirmed by the 5.27 Lakh taxpayers, the cash deposit amount has been confirmed in more than 99.5% accounts. The Department is encouraged to note that taxpayers have increased the cash deposit amount in nearly 90,000 accounts and provided details of additional 25,000 bank accounts in which cash was deposited. The explanation of cash deposit submitted by the taxpayer is being analysed in the context of nature of business and business profile in the earlier returns of the taxpayer.

This exercise has identified around 4.84 lakh taxpayers not yet registered with the e-filing portal. SMS has been sent on the mobile number of these unregistered persons. Income Tax Department is keeping a vigil on the PAN holders who have still not registered on the e-filing portal or who have not yet submitted their online response. Such taxpayers are advised to register themselves at the e-filing portal https://incometaxindiaefiling.gov.in. and submit online explanation.

In order to facilitate online responses, the last date for their submission has been extended up to 15th February, 2017 and a detailed Frequently Asked Question (FAQs) has also been issued to assist the taxpayers in submitting their response. The taxpayers should submit their response within this further extended period with a view to avoid enforcement actions under the Income-tax Act and other applicable laws.

(Meenakshi J Goswami)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

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Cash Transaction 2016 - FAQs

Cash Transaction 2016 (Frequently Asked Questions)

Viewing Information

1. Which internet browser should I use to view and file response on e-filing portal?

Ans: The e-filing portal and other utilities can be best viewed on Internet Explorer 9 or above and latest version of browsers like Mozilla and Chrome.

2. How to register on e-filing website?

Ans: Please click on “Register Yourself” on the e-filing portal and select your user type. Once user type is selected, all the mandatory fields are to be filled up and after a successful registration, you can login.

3. What information do I need to register myself on e-filing portal?

Ans: The basic information required is: PAN, Full Name, Date of birth/incorporation, communication address, valid e-mail id, mobile number and digital signature certificate (if applicable). For persons other than individuals, in addition to the above mentioned information, PAN details and contact details of the principal contact are required.

4. Is it necessary to register on e-filing website? What happens if I don’t register?

Ans: The registration is required only once and without registration, income tax return cannot be filed by user. Also, additional services like viewing 26AS statements, status of income tax return, rectifications, refund re-issue request etc. can’t be availed. In addition to that, e-filing portal is one of the very convenient mediums to communicate with income tax department. Further, you will be able to view cash transactions/cash deposits made by you during demonetization period (9th November, 2016 to 30th December, 2016), if any, only after registration. Response can be submitted online without the requirement of physical contact or visit to Income Tax Office.

5. I am not able to view any information in my e-filing account. What should I do?

Ans: The information on the online portal is dynamic and will be updated on receipt of new information, response and data analytics. You should verify and update the email address and mobile number on the e-filing portal to receive electronic communication.

Confirmation of Account

6. If the information displayed under “cash transactions 2016” does not belong to me, what should I do?

Ans: In that case, you can select the response “The account does not relate to this PAN” and click on submit button. Your feedback will be sent to the information source for confirmation.

7. If the account displayed does not belong to me, but it belongs to either my spouse or dependent person/relative, what should I do?

Ans: In such case, you can select the response “The account does not relate to this PAN” and click on submit button. Your feedback will be sent to the information source for confirmation

8. If the account displayed does not belong to me, but it belongs to another entity of which I am authorised signatory, what should I do?

Ans: In such case, you can select the response “The account does not relate to this PAN” and click on submit button. Your feedback will be sent to the information source for confirmation.

9. I am getting error message “invalid field response bank transaction confirmed” while submitting response, what should I do?

Ans: This problem is generally faced while using older version of Internet browser(s). Kindly use Internet Explorer 9 or above or latest version of browsers like Mozilla and Chrome.

10. If I have another account in a bank not being displayed in which I have deposited specified bank notes (SBN), how do I provide information about such account?

Ans: Once you click on cash transaction 2016, details of account(s) with cash deposit are displayed. There is an option provided to submit details of other bank accounts in which specified bank notes (SBN) have been deposited.

Modification of Cash Deposit Amount

11. If the cash deposit amount displayed is not correct, how do I mention the correct amount?

Ans: If the cash deposit amount displayed is not correct, please mention the correct amount under A.5. Such cases may be sent to the information source for confirmation.

12. Whether the cash deposits consist of specified bank notes only or other currency including new currency notes?

Ans: The cash deposit amount includes both specified bank notes as well as other currency including new currency notes irrespective of the denomination.

13. If one bank account pertaining to me is reported more than once on e-filing portal, how should I submit my response?

Ans: If one bank account is reported more than once, the details for one account may be submitted and an amount of zero can be mentioned in the amount column of the repeated account and the remarks “duplicate bank account” may be entered in the remark column.

Explanations of Source of Cash Deposits

14. If the cash deposited is from more than one category, how should it be segregated?

Ans: If cash is from more than one category, the source of cash may be assigned under various categories in the following sequence:

a) Cash withdrawn out of bank account (Refer B.3)

b) Cash received from identifiable persons (with PAN) (Refer B.4)

c) Cash received from identifiable persons (without PAN) (Refer B.5)

d) Cash received from un-identifiable persons (Refer B.6)

e) Cash out of receipts exempt from tax (Refer B.2)

f) Cash out of earlier income or savings (Refer B.1)

g) Cash Disclosed/To be disclosed under PMGKY (Refer B.7)

Adopting other sequence may result in case being selected for verification based on risk criteria.

15. If the cash deposit is out of cash in hand as on 8th November 2016, where do I enter that?

Ans: If cash is claimed to be out of cash in hand, the source of cash may be assigned under various categories in the following sequence:

a) Cash withdrawn out of bank account (Refer B.3)

b) Cash received from identifiable persons (with PAN) (Refer B.4)

c) Cash received from identifiable persons (without PAN) (Refer B.5)

d) Cash received from un-identifiable persons (Refer B.6)

e) Cash out of receipts exempt from tax (Refer B.2)

f) Cash out of earlier income or savings (Refer B.1)

g) Cash Disclosed/To be disclosed under PMGKY (Refer B.7)

Adopting other sequence may result in case being selected for verification based on risk criteria.

16. What am I expected to show under cash out of earlier income or savings?

Ans: In case of an individual having no business income, cash out of earlier income or savings means cash out of savings as on 8th November 2016. In case of business, the cash in hand as on 31st March 2016 can be taken as cash out of earlier income or savings.

17. If the deposited cash amount pertains to the withdrawals made from different bank accounts, do I need to mention the date(s) of such withdrawal(s)?

Ans: The dates and other details with respect to withdrawal(s) from other bank accounts can be mentioned in the remarks column of B.3.

18. What am I expected to show under cash out of receipts exempt from tax?

Ans: Cash out of receipts exempt from tax is expected to be used for taxpayers not involved in business who have received cash out of exempt income , for example agricultural income etc.

19. I am an entity whose income is exempt under income-tax Act, 1961 e.g. charitable trust etc., how do I assign it under the various categories?

Ans: If the cash pertains to receipts/donations, the source of cash may be assigned under various categories in the following sequence.

a) Cash withdrawn out of bank account (Refer B.3)

b) Cash received from identifiable persons (with PAN) (Refer B.4)

c) Cash received from identifiable persons (without PAN) (Refer B.5)

d) Cash received from un-identifiable persons (Refer B.6)

a) Cash out of earlier income or savings (Refer B.1) - closing cash balance as on 31st March 2016

The taxpayer is advised to provide the details of identifiable person (with PAN) to reduce the chances of the case being selected for verification. Adopting other sequence may result in case being selected for verification based on risk criteria.

20. If the cash is out of cash sales of business, how do I assign it under the various categories?

Ans: If the cash is out of cash sales of business, the cash may be assigned under various categories in the following sequence:

b) Cash received from identifiable persons (with PAN) (Refer B.4)

c) Cash received from identifiable persons (without PAN) (Refer B.5)

d) Cash received from un-identifiable persons (Refer B.6)

e) Cash out of earlier income or savings (Refer B.1) - closing cash balance as on 31st March 2016

The taxpayer is advised to provide the details of identifiable person (with PAN) to reduce the chances of the case being selected for verification. Adopting other sequence may result in case being selected for verification based on risk criteria.

21. I am an entity like Petrol pumps/Toll Plaza/Hospital etc. which was allowed to accept specified bank notes. How should I show the cash deposited in the response option?

Ans: The details of cash sales of business may be provided as mentioned above. The nature of business will be considered while assessing the response.

22. I am a professional having cash receipts on daily basis in the ordinary course of the business. How should I show the cash deposited in the response option?

Ans: If the cash is out of professional receipt in cash, the cash may be assigned under various categories in the following sequence:

a) Cash received from identifiable persons (with PAN) (Refer B.4)

b) Cash received from identifiable persons (without PAN) (Refer B.5)

c) Cash received from un-identifiable persons (Refer B.6)

The taxpayer is advised to provide the details of identifiable person (with PAN) to reduce the chances of the case being selected for verification. In case of cash receipts of Rs. 20,000/- or more from a single person, it is expected that the details are provided either in B.4 or B.5, as the case may be.

23. If income is received from tuition fees, tailoring etc. where should I show the same?

Ans: If the income or cash receipts pertain to the business/profession of the tax payer, the same is to be reported as ‘cash sales’ under ‘Nature of Transaction’. The cash may be assigned under various categories in the sequence of B.4, B.5 or B.6, as the case may be.

24. If I have received cash vide gift/donation, where should I show the same?

Ans: Cash receipts from gifts/donations should necessarily be filled in row B.4, B.5 or B.6 accordingly in the response option form. The taxpayer is advised to provide the details of identifiable person (with PAN) to reduce the chances of the case being selected for verification. In case of cash receipts of Rs. 20,000/- or more from a single person, it is expected that the details are provided either in B.4 or B.5 as the case may be.

25. If I have received salary/ advance salary from my employer in cash and deposited the same in my bank account, where should I show the same in the response form?

Ans: In this case, the name and respective details of the employer from whom salary/advance salary in cash has been received may be provided in B.4 or B.5 of the response form on e-filing portal.

26. If I have deposited someone else’s cash in my bank account, where should I disclose such cash amount in the response form?

Ans: In this case, the name and respective details of the person to whom cash belongs must be provided in row B.4 or B.5 of the response form on e-filing portal.

27. The account number against my PAN on e-fling portal belongs to me, but the cash amount shown was not deposited by me and I have no idea who deposited the cash in my bank account. What should I do?

Ans: In this case, the cash may be mentioned under B.6 i.e. cash received from un-identifiable persons and the facts may be provided in the remarks column.

28. If the cash deposited has already been declared under Income Declaration Scheme, 2016, what should I do?

Ans: The cash deposited should be shown under “Cash out of earlier income or savings” (B.1). In remarks column, the details regarding the declaration should be mentioned.

29. If certain amount has been declared or is to be declared under PMGKY and same has been provided in the response, how should I proceed?

Ans: You need to enter the amount which either has been declared or is to be declared under PMGKY, 2016 in row B.7 of the response form. Please refer to guidelines and procedures provided on e-filing portal regarding PMGKY 2016 for further clarifications.

Uploading data using CSV

30. How can I provide details of identifiable persons (with or without PAN) from whom cash has been received?

Ans: The details of identifiable persons (with or without PAN) from whom cash has been received can be provided on the online portal. A facility has also been provided to enable upload of the details in a CSV (Comma Separate Values) file.

31. I am getting error while uploading the CSV file in the e-filing portal, what should I do?

Ans: Please make sure that you have saved the details in .csv format only before uploading the same. Also, please make sure that you have filled all the mandatory details as provided in the user guide and there are no blank rows in the CSV file. Kindly refer to Para 5.4 of User Guide for Online Verification of Cash deposits during 9th November to 30th December, 2016.

Revision of Response

32. After submission, if I want to modify or change my response or explanation provided, how can I do so?

Ans: You can re-submit your response.

Verification of Response

33. Whether all cases will be selected for verification?

Ans: No. Data analytics will be used to select cases for verification, based on approved risk criteria.

34. Is response provided by me final or do I need to file additional information to support the claim?

Ans: You may need to provide additional information if your case is selected for further verification.

35. If any additional information is required, how shall I be intimated?

Ans: If the case is selected for verification, the request for additional information will be displayed on your e-filing portal and a communication will be sent to your e-mail id, as provided on e-filing portal.

Source: Department of Income Tax

Read More

Saving Bank Account Cash Withdrawal Limit hikes to Rs. 50000 Per week w.e.f. 20.02.2017

Removal of limits on withdrawal of cash from Saving Bank Accounts

RBI/2016-17/224
DCM (Plg) 3107/10.27.00/2016-17

February 08, 2017

All Banks

Dear Madam / Sir,

Removal of limits on withdrawal of cash from Saving Bank Accounts

Please refer to our circular DCM (Plg) 2905/10.27.00/2016-17 dated January 30, 2017 on the captioned subject.

2. In the wake of withdrawal of Specified Bank Notes (SBNs) since November 09, 2016 Reserve Bank had placed certain limits on cash withdrawals from Savings / Current / Cash credit /Overdraft accounts and withdrawals through ATMs. On a review of the pace of remonetisation, Reserve Bank partially restored status quo ante by removing the restrictions on cash withdrawals from Current / Cash credit / Overdraft accounts and ATMs effective January 31, 2017 and February 01, 2017 respectively. However, the limits on cash withdrawal from Savings Bank accounts continued to be in place.

3. In line with the pace of remonetisation, it has now been decided to remove the restrictions on cash withdrawals from Saving Bank accounts (including accounts opened under PMJDY) in a two step process as under:

• Effective February 20, 2017, the limits on cash withdrawals from the Savings Bank accounts will be enhanced to ₹ 50,000 per week (from the current limit of ₹ 24,000 per week); and
• Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts.

4. Please acknowledge receipt.

Yours faithfully,

(P Vijaya Kumar)

Chief General Manager

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Income Tax Department (ITD) launches Operation Clean Money

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 31st January, 2017.

Press Release

Income Tax Department (ITD) launches Operation Clean Money [स्वच्छ धन अभियान]

Income Tax Department (ITD) has initiated Operation Clean Money, today. Initial phase of the operation involves e-verification of large cash deposits made during 9th November to 30th December 2016. Data analytics has been used for comparing the demonetisation data with information in ITD databases. In the first batch, around 18 lakh persons have been identified in whose case, cash transactions do not appear to be in line with the tax payer’s profile.

ITD has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources. The information in respect of these cases is being made available in the e-filing window of the PAN holder (after log in) at the portal https://incometaxindiaefiling.gov.in. The PAN holder can view the information using the link “Cash Transactions 2016” under “Compliance” section of the portal. The taxpayer will be able to submit online explanation without any need to visit Income Tax office.

Email and SMS will also be sent to the taxpayers for submitting online response on the efiling portal. Taxpayers who are not yet registered on the e-filing portal (at https://incometaxindiaefiling.gov.in) should register by clicking on the ‘Register Yourself’ link.  Registered taxpayers should verify and update their email address and mobile number on the efiling portal to receive electronic communication.

A detailed user guide and quick reference guide is available on the portal to assist the taxpayer in submitting online response. In case of any difficulty in submitting on line response, help desk at 1800 4250 0025 may be contacted.

Data analytics will be used to select cases for verification, based on approved risk criteria. If the case is selected for verification, request for additional information and its response will also be communicated electronically. The information on the online portal will be dynamic getting updated on receipt of new information, response and data analytics.

The response of taxpayer will be assessed against available information. In case explanation of source of cash is found justified, the verification will be closed without any need to visit Income Tax Office. The verification will also be closed if the cash deposit is declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY).

The taxpayers covered in this phase should submit their response on the portal within 10 days in order to avoid any notice from the ITD and enforcement actions under the Income-tax Act as also other applicable laws.

(Meenakshi J Goswami)

 Commissioner of Income Tax

 (Media and Technical Policy)

 Official Spokesperson, CBDT.

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No Advance Tax No Credit of TDS under PMGKY - CBDT FAQs

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 18th January, 2017.

PRESS RELEASE

Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016

The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY) has commenced on 17th December, 2016 and is open for declarations up to 31st March, 2017.

CBDT has received queries from stakeholders seeking clarifications about various provisions of the Scheme. The issues raised have been examined and a set of twelve FAQs has been issued on 18.01.2017 vide Circular No.2 of 2017. The Circular inter alia provides

 clarifications on issues such as the deposits eligible for being declared under the Scheme, eligibility for making a declaration under the Scheme, adjustment of seized cash against the payment of tax,surcharge and penalty under the Scheme etc.

The Circular has been uploaded on the official website of the Income-tax Department www.incometaxindia.gov.in for viewing.

(Dr. Binod Kumar Sinha)

Commissioner of Income Tax

(Media & Technical Policy)

& Official Spokesperson, CBDT

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ATM withdrawal Limit hikes to 10000 and 1 Lakh of Saving and Current Account respectively - RBI

Reserve Bank of India has issued new circular for ATM withdrawal of to Rs. 10000 from Saving Account and weekly withdrawal Limit of Current Account to Rs. 1 Lakh w.e.f.16.01.2017

RBI/2016-17/213
DCM (Plg) No.2559/10.27.00/2016-17

January 16, 2017

The Chairman / Managing Director / Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks /
Regional Rural Banks / Urban Co-operative Banks /
State Co-operative Banks/District Central Co-operative Banks

Dear Sir,

Enhancement of withdrawal limits from ATMs and Current Accounts

Please refer to our circulars DCM (Plg) No. 1274, 1317, 1437 and 2142/10.27.00/2016-17 dated November 14, 21 and 28 and December 30, 2016, respectively, on the above subject.

2. On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same, with immediate effect as under:

• The limit on withdrawals from ATMs has been enhanced from the current limit of ₹ 4,500/- to ₹ 10,000/- per day per card (It will be operative within the existing overall weekly limit).
• The limit on withdrawal from current accounts has been enhanced from the current limit of ₹ 50,000/- per week to ₹ 1,00,000/- per week and it extends to overdraft and cash credit accounts also.

3. There are no changes in the other conditions. The relaxations as provided in our circular dated November 28, 2016 will continue.

4. Please acknowledge receipt.

Yours faithfully,

(P Vijaya Kumar)

Chief General Manager

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Explanatory Notes Releases by CBDT on Provisions of PM-GKY

Circular No.43 of 2016

F.No. 142/33/2016-TPL

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

(TPL Division)

***

Dated: 27th December,2016

EXPLANATORY NOTES ON PROVISIONS OF THE TAXATION AND INVESTMENT REGIME FOR PRADHAN MANTRI GARIB KALYAN YOJANA, 2016 AS CONTAINED IN CHAPTER IX-A OF THE FINANCE ACT, 2016

Introduction

1. The Taxation Laws (Second Amendment) Act, 2016 has been enacted by Parliament on 15.12.2016. The said Act has inter alia amended the provisions of Finance Act, 2016 and inserted a new Chapter on, ‘The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (hereinafter ‘the Scheme’) in the Finance Act, 2016.

2. The Scheme provides an opportunity to persons having undisclosed income in the form of cash or deposit in an account maintained with a specified entity (which includes banks, post office etc.) to declare such income and pay tax, surcharge and penalty totaling in all to 49.9 per cent. of such declared income. Besides, the Scheme provides that a mandatory deposit of not less than 25% of such income shall be made in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016(hereinafter ‘the PMGKY Deposit Scheme’) which has separately been notified by the Department of Economic Affairs. The Scheme has commenced on 17.12.2016 and shall remain open for declarations/deposit upto 31.03.2017.

Scope of the Scheme

3. A declaration under the aforesaid Scheme may be made in respect of any income in the form of cash or deposit in an account maintained by the person with a specified entity, chargeable to tax under the Income-tax Act for any assessment year commencing on or before the 1st day of April, 2017. No deduction in respect of any expenditure or allowance 2 or set-off of any loss shall be allowed against the income in respect of which a valid declaration is made under the Scheme.

Tax, surcharge, penalty & deposit under the Scheme

4. The person making a declaration under the Scheme would be liable to pay tax at the rate of thirty per cent. of the undisclosed income as increased by surcharge to be called the Pradhan Mantri Garib Kalyan Cess calculated at the rate of thirty-three per cent. of such tax. In addition, penalty at the rate of ten per cent. of the undisclosed income shall be payable.

The declarant shall also be required to deposit an amount not less than twenty-five per cent. of the undisclosed income in the PMGKY Deposit Scheme. The deposit shall bear no interest and the amount deposited shall have a lock-in period of four years.

Time limits for declaration and making payment

5. A declaration under the Scheme can be made anytime on or after 17th December, 2016 but on or before 31st March, 2017. The tax, surcharge and penalty payable under the Scheme and deposit to be made in the Deposit Scheme, shall be paid/made before filing of declaration under the Scheme. The declaration shall be accompanied with proof of payment made in respect of tax, surcharge and penalty payable under the Scheme and proof of deposit made in the PMGKY Deposit Scheme.

Form for declaration

6. A declaration under the Scheme in Form-1 as prescribed in the Rules may be made at any time on or before 31.03.2017. After such declaration has been furnished, the notified Principal CIT/ CIT will issue an acknowledgment in Form-2 to the declarant within 30 days from the end of the month in which the declaration under Form-1 is made.

Filing of declaration

7. A declaration under the Scheme can be filed:

(i) Electronically under digital signature with CIT(CPC) Bengaluru or jurisdictional Principal CIT/CIT notified under section 120 of the Income-tax Act, 1961.

(ii) Electronically through Electronic Verification Code (EVC) or in print form with jurisdictional Principal CIT /CIT notified under section 120 of the Income-tax Act, 1961.

Declaration not eligible in certain cases

8. The provisions of this Scheme shall not apply—

(a) in relation to any person in respect of whom an order of detention has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 subject to the conditions specified under the Scheme.

(b) in relation to prosecution for any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention) Act, 1967, the Prevention of Corruption Act, 1988, the Prohibition of Benami Property Transactions Act, 1988 and the Prevention of MoneyLaundering Act, 2002;

(c) to any person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992;

(d) in relation to any undisclosed foreign income and asset which is chargeable to tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Circumstances where declaration shall be invalid

9. A declaration shall be void and shall be deemed never to have been made where a declaration has been made by misrepresentation or suppression of facts or without payment of tax and surcharge or penalty or without depositing the requisite amount in the PMGKY Deposit Scheme, and in such cases all the provisions of the Income-tax Act, including penalties and prosecutions, shall apply accordingly.

Tax, etc., not refundable

10. Any tax, surcharge or penalty paid under the Scheme shall not be refundable under any  circumstances.

Effect of valid declaration

11. Where a valid declaration as detailed above has been made, the following consequences will follow:

(a) The amount of undisclosed income declared shall not be included in the total income of the declarant under the Income-tax Act for any assessment year;

(b) A declarant under this Scheme shall not be entitled, in respect of undisclosed income or any amount of tax and surcharge paid thereon, to re-open any assessment or reassessment made under the Income-tax Act or the Wealth-tax Act, 1957, or to claim any set-off or relief in any appeal, reference or other proceeding in relation to any such assessment or reassessment

(c) The contents of the declaration shall not be admissible in evidence against the declarant for the purpose of any proceeding under any Act other than the Acts referred in Para- 8 above.

(Dr Thakur Singh Mapwal)

Under Secretary to the Government of India

Copy to:-
1. PS to FM/ OSD to FM/ OSD to MoS(R).
2. PS to Secretary (Revenue).
3. The Chairperson, Members and all other officers in CBDT of the rank of Under Secretary and above.
4. All Pr. Chief Commissioners/ Pr. Director General of Income-tax – with a request to circulate amongst all officers in their regions/ charges.
5. Pr. DGIT (Systems)/ Pr. DGIT (Vigilance)/ Pr. DGIT (Admn.)/ Pr. DG (NADT)/ Pr. DGIT (L&R).
6. CIT (M&TP), CBDT.
7. Web manager for posting on the departmental website.

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How can India go Cent-percent Cashless ?

Stop Hundi Box donation in Religious Place like you are visiting your religious places and put cash in Hundi Box.

All companies registered under section 8 of Companies act, 2013 make mandatory amount collection from banking system not in form of cash.

Charitable Trust can give donation to any organisation only in Account Payee cheque / account Payee Bank Draft / NEFT / on line bank transfer.

All Organisation who collect donation from public come under the definition of "Deposit From Public" and can collect donation only from Banking systems i.e. account Payee cheque or account payee bank draft/ NEFT/ on line payment.

All Festival Donation must accepted in the form cheque/NEFT/E-Payment.

All political Parties registered can received donation only from Account Payee cheque/Account Payee Bank Draft/NEFT/e-Payment. if any political party/organisation received Donation in cash all received in cash taxable @ 150% to political parties.

All Payment Exceed Rs.2000/- must account payee cheque or account payee bank draft / E-payment.

No Expenditure allowed from Income from business & Profession if you made Payment in cash exceeding Rs.100/- per day make maximum cash expenses limit in a year 36500 per PAN No. if your cash payment exceed Rs.36500/- expenses not to allowed from income tax purpose.

Wages Payment must labour account if you are claiming expense except agriculture labour and except agriculture income.

Foreign visitor can open bank account from his Adhar card/Pass Port and  Debit card can provide on arrival in India within 5 minute from landing in India.

If you are Purchasing goods or services exceeding Rs.1000/- you have to make payment from cheque/draft/NEFT/e-payment.

All household expenditure exceed Rs.1000/- must  from banking system.

School/Education institution can collect fees only from cheque/NEFT/e-payment.

All Bank account must be make public with the help of transparency portal of bank accounts and real time update link provide all Indian person/co/organisation on line and any person find Reliance/Tata/TCS bank account/BJP/congress/bank account details who is giving and who is Paying amount.

All bank Loan must be make public through banking transparency portal.

All NPA account information make public and request from Public NPA account holder is will full defaulter/not.

Make a website for Indian resident for disclosure of his all assets like Election declaration of assets by MP/MLA.

Make ww.incometaxindiaefiling.gov.in site data public and any person can find Income tax return information of other person.

Make Conflict of Interest act " Any person who is on Business or Profession first Leave his business than comes for election / public service.

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Now, Once Time Only Rs. 5000 Deposit in Account till 30th Dec., 2016 - New Amendment

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

S.O. 4086(E).—In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016, namely:—

In the said notification, in paragraph 2,—

(a) in clause (iii), the following provisos shall be inserted, namely:––

“Provided that the deposit upto the amount of Rs.5000/- shall be made directly into such account and the rest of the amount, if any, shall be subject to such conditions as the Reserve Bank of India may specify:

Provided further that the deposit of an amount exceeding Rs.5000 shall be made only once per account until 30th December, 2016;”;

(b) after clause (iii), the following clause shall be inserted, namely:––

“(iiia) there shall not be any limit on the quantity or value of the specified bank notes that are tendered for payment and deposit made under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016;”;

(c) after clause (ix), the following clause shall be inserted, namely:––

“(x) deposit of specified bank notes collected between 10th day of November to 14th day of November, 2016, by the District Co-operative Central Bank shall be subject to instructions of the Reserve Bank of India and for the specified bank notes deposited by individual customers or by the Primary Agricultural Credit Societies complete audit check of the veracity of the Know Your Customer documents of the said individual or the members of the said Primary Agricultural Credit Societies shall be conducted by the

National Bank for Agriculture and Rural Development:

Provided that the linked currency chest to District Co-operative Central Banks shall give the exchange value for verified specified bank notes only and subject to usual checks relating to identification of fake Indian currency notes.”.

[F. No. 10/03/2016-Cy.I]

Dr. SAURABH GARG, Jt. Secy.

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Government Promotes 11 Incentives on Digital Payment and Cashless Economy.

In the aftermath of the cancellation of the legal tender character of old Rs.500 and Rs.1,000 notes, there has been a surge in the digital transactions through use of credit/debit cards and mobile phone applications / e-wallets etc. To further accelerate this process, the Central Government has decided on a package of incentives and measures for promotion of digital and cashless economy in the country.

These incentives/measures are following:

1. The Central Government Petroleum PSUs shall give incentive by offering a discount at the rate of 0.75% of the sale price to consumers on purchase of petrol/diesel if payment is made through digital means.

Nearly 4.5 crore customers buy petrol or diesel at such petrol pumps per day who can take benefit of this incentive scheme. It is estimated that petrol/diesel worth Rs.1800 crore is sold per day to the customers out of which nearly 20% was being paid through digital means. In the month of November 2016 it has increased to 40% and the cash transaction of Rs.360 crore per day have got shifted to cashless transaction methods. The incentive scheme has the potential of shifting at least 30% more customer to digital means which will further reduce the cash requirement of nearly Rs. 2 lakh crore per year at the petrol pumps.

2. To expand digital payment infrastructure in rural areas, the Central Government through NABARD will extend financial support to eligible banks for deployment of 2 POS devices each in 1 Lakh villages with population of less than 10,000. These POS machines are intended to be deployed at primary cooperative societies/milk societies/agricultural input dealers to facilitate agri-related transactions through digital means.

This will benefit farmers of one lakh village covering a total population of nearly 75 crore who will have facility to transact cashlessly in their villages for their agri needs.

3. The Central Government through NABARD will also support Rural Regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders to enable them to make digital transactions at POS machines/Micro ATMs/ATMs.

4. Railway through its sub urban railway network shall provide incentive by way of discount upto 0.5% to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means.

Nearly 80 lakh passengers use seasonal or monthly ticket on suburban railways, largely in cash, spending worth nearly Rs.2,000 crore per year. As more and more passengers will shift to digital means the cash requirement may get reduced by Rs.1,000 crore per year in near future.

5. All railway passengers buying online ticket shall be given free accidental insurance cover of upto Rs. 10 lakh. Nearly 14 lakh railway passengers are buying tickets everyday out of which 58% tickets are bought online through digital means. It is expected that another 20% passengers may shift to digital payment methods of buying railway tickets. Hence nearly 11 lakh passengers per day will be covered under the accidental insurance scheme.

6. For paid services e.g. catering, accommodation, retiring rooms etc. being offered by railways through its affiliated entities/corporations to the passengers, it will provide a discount of 5% for payment of these services through digital means.

All the passengers travelling on railways availing these services may avail the benefit.

7. Public sector insurance companies will provide incentive, by way of discount or credit, upto 10% of the premium in general insurance policies and 8% in new life policies of Life Insurance Corporation sold through the customer portals, in case payment is made through digital means.

8. The Central Government Departments and Central Public Sector Undertakings will ensure that transactions fee/MDR charges associated with payment through digital means shall not be passed on to the consumers and all such expenses shall be borne by them. State Governments are being advised that the State Governments and its organizations should also consider to  absorb the transaction fee/MDR charges related to digital payment to them and consumer should not be asked to bear it.

9. Public sector banks are advised that merchant should not be required to pay more than Rs. 100 per month as monthly rental for PoS terminals/Micro ATMs/mobile POS from the merchants to bring small merchant on board the digital payment eco system.

Nearly 6.5 lakh machines by Public Sector Banks have been issued to merchants who will be benefitted by the lower rentals and promote digital transactions. With lower rentals, more merchants will install such machines and promote digital transactions.

10. No service tax will be charged on digital transaction charges/MDR for transactions upto Rs.2000 per transaction.

11. For the payment of toll at Toll Plazas on National Highways using RFID card/Fast Tags, a discount of 10% will be available to users in the year 2016-17.

Source: CA Club India

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Extra Benefits for digital Payments at Petrol Pumps, Insurance, Railway Tickets, Tolls Etc.

More incentives for digital transactions

The government on Thursday announced a slew of discounts to persuade people to switch to digital modes of payment as shortage of cash continued with banks. It also waived service tax, now at 15%, on credit and debit card transactions of up to Rs 2,000. Petrol and diesel paid digitally will enjoy a rebate of 0.75%.

Finance Minister Arun Jaitley announced the discounts on Thursday, exactly a month after the government banned Rs 500 and Rs 1,000 notes. He said those who buy seasonal tickets on suburban railway networks will get a 0.5% discount, and those buying railway tickets online will get free accident insurance coverage for Rs 10 lakh. A 10% discount will be offered on new general insurance policies paid for through PSU websites. An 8% discount applies to life insurance. Railway catering, accommodation, and retiring room bookings online will get a 5% discount, Jaitley said.

“There is no end date for these offers. These are only some of the efforts the government is making to promote payment by credit, debit cards and e-wallets,” he said. Jaitley also said all transactions with government departments and PSUs will be free of transaction and merchant discount rate charges.

On national highways, which have witnessed commotion, digital payments will fetch you a 10% discount. Each village with a population of up to 10,000 will get two point-of-sale machines free of cost.

Source: www.deccanherald.com

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Over Rs. 5000 make e-Payment to All Government Transactions.

After demonetization of Rs. 1000 & 500 from 09th November, 2016 various announcements or policy decisions has taken by Government from time to time to encourage cashless transactions. Yesterday Finance Minister has announced new policy decision regarding all government payments above Rs 5,000 that the payment of transaction over Rs. 5000 should make through e-payment and asking government staff to maximize use of debit cards for personal transactions. The Finance Ministry reviewed the existing limit of Rs 10,000 prescribed regarding e-payment to government suppliers and others. It’s been decided to lower threshold limit to Rs 5,000. 

Any transaction of above Rs 5,000 to Suppliers, contractors, grantee/loanee institutions etc. by all Government Departments including aided agency or institutions to be made now through e-Payment.

Ministry of Finance has directed all the ministries and the ministry to implement the fresh order with immediate effect.

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Key Highlights of Proposed Amendment in Income Tax Law after Demonetisation.

Changes proposed in income tax law after demonetisation in 10 points

The government moved an amendment in the Lok Sabha, seeking to change income tax laws for taxing of undisclosed income in the wake of demonetisation.

The government moved an amendment in the Lok Sabha, seeking to change income tax laws for taxing of undisclosed income in the wake of demonetisation. The proposed tax rate on people disclosing their unaccounted wealth is around 50 per cent, much higher than the 30 per cent tax rate at the highest slab.

The government said that “there have been representations and suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean.”

This will help the government mobilise “additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy,” the government said in its objective for introducing the amendment. 

Here are key highlights of the proposed amendment to tax laws:

1. According to the proposed amendment, if the declarant comes clean on his undisclosed income he/she shall be required to pay tax at 30 per cent of the undisclosed income and penalty at 10 per cent of and a surcharge of 33 per cent.
2. This comes around to an effective tax rate of around 50 per cent, say tax experts.
3. This is higher than the 45 per cent tax rate that was charged under the Income Disclosure Scheme, 2016, which provided a one-time opportunity to domestic black money holders to disclose wealth and come clean. The Income Disclosure Scheme was open from June to September.
4. The surcharge will be called ‘Pradhan Mantri Garib Kalyan Cess’.
5. In addition, to tax surcharge and penalty, the declarant shall have to deposit 25 per cent of undisclosed income in a scheme to be notified by the central government under Pradhan Mantri Garib Kalyan Deposit Scheme, 2016′.
6. The deposit shall earn no interest and the amount deposited shall be allowed to be withdrawn only after 4 years of deposit.
7. This amount is proposed to be utilised for the programmes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc.
8. For those who continue to hold onto undisclosed cash and are caught by tax authorities, the tax rate could go up to 85 per cent.
9. Revenue Secretary Hasmukh Adhia said the deterrent provisions were necessary so that people have the fear of hoarding black money.
10. Deposits which have been already made from November 10 will be covered under Pradhan Mantri Garib Kalyan Deposit Scheme.

Source: TDSMAN

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Pay 50% Tax in Pradhan Mantri Yojana and escape from all explanation of Deposits

No need to explain source of deposits taxable at 50% under Pradhan Mantri Yojna

The Government has announced demonetization of existing currency of Rs. 500/1000 with effect from the 9th November, 2016. However, concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 ('Act') could possibly be used for concealing black money. So, the Government has introduced Taxation Laws (Second Amendment) Bill, 2016 in the Lok Sabha to amend the provisions of Income-Tax Act.

The Government has announced Pradhan Mantri Garib Kalyan Yojana 2016 (PMGKY) in the Taxation Laws (Second Amendment) Bill, 2016. As per this PMGKY black money deposited in banks or held in cash can be offered for taxation at 49.9% (i.e., 30% tax, 9.9% surcharge and 10% penalty).

The Revenue Secretary, Hasmukh Adhia said that Income-tax department will not ask for the source of funds deposited in banks if the entire income is declared under PMGKY.

It would be the last chance to come clean for black money holders. Any detection of black money by AO thereafter (other than search cases) would attract 83.25% tax.

From bare reading of this statement of Revenue Secretary, doubts arise as to whether any corrupt official or corrupt member of political party or any criminal can also come clean by paying 49.90% tax under PMGKY.

No, any criminal or corrupt person cannot avail of benefit of this PMGKY as he is specifically excluded from purview of PMGKY.

Doubts also arise as to how Government will come to know that any corrupt person or any criminal is offering income under PMGKY as Income-Tax Act Dept. will not ask for source of funds deposited in banks?

Even if we assume that any corrupt person or any criminal has availed of benefit of this PMGKY, then also benefit of such PMGKY will be denied when such fact comes to notice of the dept. In that scenario, action will be taken under respective provision of IPC and Prevention of Corruption Act and that person will be liable to pay tax at 83.25%.

Source: TAXMANN

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Old Notes Rs. 500 and Rs. 1000 Exempt from Trasaction of School College Fees and Mobile Recharge upto 15.12.16 - PIB

After due consideration of all relevant aspects, the Central Government takes various decisions relating to certain operational aspects of the Scheme relating to cancellation of legal tender character of old Rs. 500 and Rs. 1000 notes; No over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016;.Certain other exemptions continued till 15th December, 2016 with certain additions and modifications. 

The Central Government has been reviewing the issues related to the cancellation of legal tender character of old Rs. 500 and Rs. 1000 notes.  The Government has also been receiving various suggestions in this regard.  After due consideration of all relevant aspects, the following decisions relating to certain operational aspects of the Scheme have now been taken:

(i)   It has been observed that over the counter exchange of the old currency notes of Rs. 500 and Rs. 1000 denomination has shown a declining trend.  It has further been felt that people may be encouraged and facilitated to deposit their old Rs. 500 and Rs. 1000 notes in their bank accounts. This will encourage people who are still unbanked, to open new bank accounts.  Consequently, there will be no over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016.

(ii)  Government had also permitted various exemptions for certain transactions and activities wherein payment could be made through old Rs. 500 and Rs. 1000 notes.  It has been decided that all these exemptions, with the additions and modifications as detailed below, may be continued for a further period from the midnight of 24.11.2016 up to and inclusive of 15.12.2016 :-

(a)   Payments for the transactions under all the exempted categories will now be accepted only through old Rs. 500 notes;

(b)   Payment of School fees up to Rs. 2000 per student in Central Government, State Government, Municipality and local body schools;

(c)   Payment of fees in Central or State Government colleges;

(d)   Payments towards pre paid mobile top-up to a limit of Rs. 500 per top-up;

(e)   Purchase from Consumer Cooperative Stores will be limited to Rs. 5000 at a time;

(f)   Payment of current and arrear dues to utilities will be limited to only water and electricity.  This facility will continue to be available only for individuals and households;

(g)   Considering that the Ministry of Road Transport and Highways have continued the toll free arrangement at the toll plazas up to 2.12.2016, it has been decided that toll payment at these toll plazas may be made through old Rs. 500 notes from 3.12.2016 to 15.12.2016.

(h)   Foreign citizens will be permitted to exchange foreign currency up to Rs. 5000 per week.  Necessary entry to this effect will be made in their passports.  (Necessary instructions in this regard will be issued by the RBI.)

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Daily Exchange Limit of Notes Reduced to Rs. 2000

The Central Government takes several decisions to facilitate farmers, small traders, Group ‘C’ Employees of Central Government including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises in the aftermath of the cancellation of the legal tender character of the old Rs. 500 and Rs. 1000 notes; 

Also decides to reduce the limit of exchange of old Rs. 500/- and Rs. 1000/- notes across the counter in banks from Rs. 4500/- to Rs. 2000/-with effect from 18th November, 2016.

In the aftermath of the cancellation of the legal tender character of the old Rs. 500 and Rs. 1000 notes, the Government of India has been receiving several suggestions including those from the State Governments. The Government has considered various suggestions and the following decisions relating to certain operational aspects of this scheme have been taken: 

i. We are now at the beginning of the Rabi season. The farmers need various inputs for their agricultural activities. While the Government is keen on promoting payment through the banking or digital system, it is felt necessary to make some quantum of cash available with farmers to meet various expenses in connection with agricultural operations. It has, therefore, been decided that farmers would be permitted to draw upto Rs. 25000/- per week in cash from their KYC compliant accounts only. These cash withdrawals would be subject to the normal loan limits and conditions. This facility will also apply to the Kisan Credit Cards (KCC). 

ii. Farmers are currently selling their produce from the Kharif season in the APMC markets/mandis. The farmers who receive such payments in their bank accounts through cheque/ RTGS will be permitted to draw up to Rs. 25000/- per week in cash. These accounts will have to be KYC compliant. This facility will enable the farmers to meet their various expenses connected with agriculture. This will also infuse lot of liquidity into the rural sector. 

iii. Traders registered with APMC markets/mandis will be permitted to draw up to Rs. 50,000/- per week in cash from their KYC compliant accounts as in the case of business entities. This will enable these traders to pay wages and facilitate easy loading, unloading and other activities at the mandis. 

iv. For payment of crop insurance premium, States fix time limits depending on their local requirements and conditions. Consequently, the last date for payment expires on different dates. It has now been decided to extend the last date for payment of crop insurance premium by 15 days. 

v. While encouraging families to incur wedding expenses through cheques or digital means, it has been decided to permit families celebrating weddings to draw up to Rs. 2,50,000/- in cash from their own bank accounts. These accounts have to be necessarily KYC compliant. The amounts can be drawn only by either of the parents or the person getting married. Only one of them will be permitted to draw this amount. This limit of Rs. 2,50,000/- will apply separately to the girl’s family and the boy’s family. The person drawing such amount has to furnish the PAN details. Further, a self-declaration will have to be submitted by the person to the effect that only one person from his/her family is drawing the amount. It is expected that members of the public will fully cooperate to ensure that the above guidelines are adhered to. Any misuse of this facility will invite appropriate action based on the self-declaration and other details. 

vi. At present, over the counter exchange of old Rs. 500/- and Rs. 1000/- notes is limited up to maximum of Rs. 4500/- per person. Reports have been received that the same persons are going back to the counter again and again, thereby cornering the facility and depriving many other people from exchanging old notes. There are also reports of organized groups indulging in such practices to convert their black money into white. It is now expected and desirable that people put their old notes into their bank accounts. However, for convenience of the people who may be on temporary visit either for work or otherwise, it has been decided to reduce this limit of exchange of old Rs. 500/- and Rs. 1000/- notes across the counter in banks from Rs. 4500/- to Rs. 2000/-. This facility will be available only once per person. The reduced limit of Rs. 2000/- will take effect from 18th November, 2016. 

vii. Central Government employees up to Group `C’ including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises will be given an option to draw salary advance up to Rs. 10,000/- in cash. This amount will be adjusted in their salary for November, 2016. It is expected that this decision will ease the pressure on the banks. 

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Old Currency of Rs. 500 and Rs. 1000 can be used for payment of specific Bills and Taxes till Today

We all are well known about Government Declaration about currency Notes of Rs. 500 and Rs. 1000 that these notes are surrender and these are exchange at any branch of a Bank or Post Office.

However, Economic Affairs Secretary, Shaktikanta tweeted that such old notes of Rs 500 and Rs 1000 would be valid till November 11, 2016 for payment of utility bill like water, electricity, etc. He further said that such old notes can also be used for payment of fees, taxes and penalties to the Central and State Govt. including Municipality and local bodies.

For more details read the following notifications :

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 8th November, 2016

S.O. 3408(E).—Whereas, by the notification of the Government of India in the Ministry of Finance, vide F. No. 10/3/2016-Cy.I dated 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), dated the 8th November, 2016, the Central Government declared that the bank notes of existing series of denomination of the value of five hundred rupees and one thousand rupees (hereinafter referred to as the specified bank notes), shall cease to be legal tender on and from the 9th November, 2016;

And whereas, it has become necessary to notify certain exemptions for the convenience of the members of public in carrying out certain emergent and urgent transactions using the specified bank notes; Now, therefore, in exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby declares that the specified bank notes shall not be ceased to be legal tender, with effect from the 9th November, 2016 until the 11th November, 2016, to the extent of transactions specified below, namely:—

(a) for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor's prescription;

(b) at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses and airline ticketing counters at airports for purchase of tickets;

(c) for purchases at consumer cooperative stores operated under authorisation of Central or State Governments;

(d) for purchase at milk booths operating under authorisation of the Central or State Governments;

(e) for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil Marketing Companies;

(f) for payments at crematoria and burial grounds; 

(g) at international airports, for arriving and departing passengers, who possess specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character;

(h) for foreign tourists to exchange foreign currency or specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character.

2. All establishments referred to in paragraph 1, shall maintain complete account of record of stock and sale of transactions made with the specified bank notes during the period between 9th November, 2016 and 11th November, 2016.

[F. No. 10/03/2016-Cy. I]

Dr. SAURABH GARG, Jt. Secy.

And

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 9th November, 2016

S.O. 3416(E).—In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby amends the notification of the Government of India, Ministry of Finance, Department of Economic Affairs number S.O. 3408(E) dated the 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) dated the 8th November, 2016, namely:-

1. In the said notification, in paragraph 1, after clause (h), the following clauses shall be inserted, namely :-

“(i) for making payments in all pharmacies on production of doctor’s prescription and proof of identity;

(j) for making payments on all toll plazas on the State and National Highways;

(k) for payments on purchases LPG gas cylinders;

(l) for making payments to catering services on board, during travel by rail;

(m) for making payments for purchasing tickets for travel by suburban and metro rail services;

(n) for making payments for purchase of entry tickets for any monument maintained by the Archeological Survey of India.”.

[F. No. 10/03/2016-Cy.I]

Dr. SAURABH GARG, Jt. Secy. 

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