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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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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Income Tax Authorities constitute a committee for transfer cases w.e.f. 01.04.2012

Income Tax Authorities has published a press released on 02.09.14 u/s. 119 of Income Tax Act, 1961 to constitute a Committee for approval to tax indirect transfer cases for income arising before 01.04.2012, which is as under:

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

PRESS RELEASE

New Delhi, the 2nd September, 2014

The Finance Minister in his budget speech on 10th July, 2014 had made an announcement that all fresh cases arising out of the retrospective amendments of 2012 in respect of indirect transfer and coming to the no tice of Assessing officer will be scrutinized by a High Level Committee to be constituted by Central Board of Direct Taxes (CBDT) before any action is initiated in such cases.

2. The CBDT in exercise of powers conferred under section 119 of the Income-tax Act, 1961 has issued an Order No.149/141/2014-TPL dated 28th August, 2014 constituting the High Level Committee consisting of the officers of CBDT. The Committee includes Joint Secretary, (FT&TR-I), Joint Secretary (TPL-I) and Commissioner of Income-tax (ITA). Further, the Director (FT&TR-I) will be the Secretary of the Committee. The Order is available on official website of Income-tax Department at http://incometaxindia.gov.in.

3. Henceforth, in all fresh cases where income on account of retrospective amendments to the provisions related to indirect transfer is considered to accrue or arise before the 1st April, 2012, the Assessing Officer shall be required to seek prior approval of any proposed action in this regard from the Committee. The Committee shall, after provident an opportunity to the taxpayer, issue appropriate directions to the Assessing Officer in a time bound manner. The Committee would be required to submit periodic report to the CBDT. The CBDT may intervene in the working/deliberations of the Committee, as and when required.

(Rekha Shukla)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

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New Mobile Services for all tax payee on https://incometaxindiaefiling.gov.in/mobile/.

Income Tax department launched a new service i.e. Mobile Service.  Taxpayee can take advantages of this service by uding url https://incometaxindiaefiling.gov.in/mobile/. The Mobile Services Taxpayee can uses after Register on https://incometaxindiaefiling.gov.in/ here.

This service contains the following features:

• Submit Returns / Forms
• View Form 26AS (Tax Credit)
• Outstanding Tax Demand
• ITR-V Receipt Status
• CPC Refund Status
• Rectification Status
• Know Your Jurisdictional A.O.
• Know Your PAN
• Know Your TAN
• Apply Online (PAN / TAN)
• Tax Calculator
• E-Pay Tax

If the Taxpayee wants help from Income Tax Department, they can ask their queries on 1800 180 1961 regarding Income Tax, In accordance with Rectification and Refund Tax payee can call here 1800 425 2229 and for information about e-filing of returns Taxpayee can contact here 1800 4250 0025.

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"MobiCash Easy" mobile Wallet Service launched by SBI.

In Mumbai and Delhi SBI has launched "Mobi-Cash Easy on a Pilot Basis" mobile wallet Service for their both customers i.e. SBI Customers or Non-SBI Customers.  This new service and it is prepaid service for all customers allow to transfer money to any bank account or pay bills, recharge mobiles, and pay for digital TV and broadband connections all over India. The customers can also check their balance and the last five transactions they conducted through their mobile wallet. This service does not require any Know-Your-Customer (KYC) compliance. Customers can register themselves for SBMC Easy at any of the Oxigen retail outlet. With this, SBI plans to tap the migrant population who send money home frequently.  “Even though the product can be used by any segment of the population, it is designed in such a way that it can help immensely the migrant labourers who generally do not carry any document to meet KYC compliance but always have a need to send money home,” SBI said in a statement.

As per Reserve Bank of India guidelines, customers cannot withdraw money from their wallet once it is deposited. At any time, the balance in the mobile wallet is capped at Rs 10,000 a month. The customers cannot send more than Rs 5,000 in a single transaction to another mobile wallet issued by SBI. In this servide three such transactions are allowed in a month.

For details go to your nearest branch and ask about it.

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Can we heavy withdrawals in cash, What says Income Tax law?

The retirement amount of Government/State Government Employee is comes in heavy amount and it directly transfer to Employee Account. Although, the employee is taxpayee.  But after retirement the huge amount credited in his account and thus it is Words of Caution that one precaution normally every tax payer should take. As far as possible, have a transaction by account payee cheques/instruments only. There is a penal consequences under section 269SS of the Income Tax Act-1961 if any person accepts the loan or deposits of Rs. 20,000/- or more otherwise than by an account payee instruments. Even amongst the family members the loan of Rs. 20,000/- or more in cash is prohibited.

In normal course, cash deposits are a matter of investigations & no special inquiry is carried out for the cash withdrawals. In the some specific case, there is nothing to worry or bother as source of fund is explainable. The withdrawals could be treated either in the capacity of an agent acting on behalf retired Employee for heavy transactions that could be treated as gift received. For the genuine transactions, the assessee should not get panic. The Income Tax Department in general is an assessee friendly.

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Mobile Money Transfer facility provided by Indian Postal Department:

The Department of Posts (DoP) has launched the mobile-based money transfer service by Post Offices for quicker transfer of money from one city to another. Launching the service, the Union Minister of State for Communications, Information Technology and Home, Mr Gurudas Kamat, said the aim of launching this service was to help those who were unable to avail banking services. The service will be operated by DoP with technological support from BSNL.

He said to begin with, the service has been launched between Punjab and Bihar Postal Circles for transfer of money up to Rs 50,000. The complete roll-out throughout the country would be completed in eight weeks, he added.

The Minister launched the service by remitting Rs 1,000 to Help Age India at Patna.

Mr Kamat said persons intending to use the service would have to go to the Post Office which will provide them a unique PIN code after the transfer of money.

The sender would have to send the PIN to the recipient through a text message who would be home delivered the money after verification of the PIN on his mobile. The recipient could also go to the Post Office and collect the money, he said.

Mr Kamat said India Post is the largest service network for transfer of money and annually about nine crore money orders are being sent on the postal network.

He said that to speed up the money transfer service, the DoP had introduced Electronic MO and Internet MO and that the mobile MO was the third such service.

The Secretary of Posts, Ms Radhika Doraiswamy, said that the DoP also proposes to interconnect all the 1, 55,000 Post Offices in the country to subsequently introduce Core Postal Service.

She said the department would also introduce the PO Savings Bank for which the mandatory clearances were being sought.

Referring to the high cost of sending money through MO, she said: “We need to reduce the Commission charges. We should be able to do this soon.’’

The charges for mobile money transfer will be the same as it is on the traditional money order — five per cent of the remitted amount, a department spokesman said.

The Director of BSNL, Mr R.K. Aggarwal, said that the BSNL-PO joint venture will help the rural customers in availing of money transfer services. This will also revolutionise the financial inclusion programme of the government.

He said in 1947 the tele-density in the country was 0.47 per cent which increased to 4.7 per cent in 1997 in fifty years. But after that within 14 years, the tele-density has now reached 70 per cent.

The total number of mobile connections at present is 850 million and 15 million new connections are being activated in the country every month, he said.

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