TIOL-DDT 130 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 130</font><br> 07 06 2005<br> Tuesday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Banking Cash Transaction Tax- Board issues explanatory notes</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has issued explanatory notes on the BCTT effective from 1.6.2005.<br> <br> • A cash withdrawal would fall within the scope of a taxable banking transaction if it satisfies the following conditions:</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The cash withdrawal (by whatever mode) is from an account other than a savings bank account.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The account is maintained with any scheduled bank.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) The amount of cash withdrawn on a single day from the same account should exceed Rs. 25,000 in the case of an individual or a HUF or Rs. 1,00,000 in the case of any ther person.<br> <br> • <b>A receipt of cash on encashment of term deposits would also be within the scope of a taxable banking transaction.</b><br> <br> • The value of the taxable banking transaction shall be the amount of cash withdrawal on any single day.<br> <br> • Multiple withdrawals of cash from the same account on any single day shall be treated as a single taxable banking transaction. Withdrawal from different accounts and different branches by an individual will not be clubbed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Once the threshold is crossed, the tax is payable on the whole amount withdrawn, not in excess of the exempted amount. That is if Rs. 30,000/- is withdrawn, tax has to be paid on Rs. 30,000/- and not on Rs. 5000/- <br> <br> • Withdrawal by Credit cards not liable for tax, but by debit card will be subject to tax.<br> <br> • <b>Even Government offices are liable to pay this tax.</b> The objective of the banking cash transactions tax was declared to be to prevent generation and laundering of black money through the banking channels. Does the <b>Government now believe that Government offices are also into black money generation and laundering?</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• <b>The Tax will be attracted even if the withdrawal is made outside India, but debit is made in India. Conversely if the withdrawal is in India but the account is abroad, no tax is payable.</b></font></p> <p align="justify"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Tax will be collected by the bank at the time of transaction</font></b></p> <p align="justify"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• There are provisions for assessment and appeals</font></b></p> <p align="justify"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• If the bank pays excess tax, it will be refunded, but the Bank is required to refund it to the person from whom it was collected. What happens if the fellow has closed his account?</font></b></p> <p align="justify"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• BCTT paid is deductible in computing the income from profession or business. </font></b></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/pdfnoti/pdfcbdt/pdf2005/it05cir03.pdf">CBDT CIRCULAR NO. 3/2005 dated 3.6.2005</a><br> <br> <font color="#006633"><b>Import of metallic waste - Board adds more ICDs</b></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On May 20th 2005, the DGFT notified some more ICDs for import of metallic waste. In DDT 122 – 26.05.05, we had pointed out that this has to be brought into effect by the CBEC. And sure enough the Board has now come up with an amendment to add these ICDs. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2005/cuscir05_024.htm">CIRCULAR NO. 24 /2005-Cus, Dated : June 2, 2005</a></font></p> <p align="justify"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax Forms amended</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Form No. 1 – Return for companies and Form. No. 3 – Return for Non – Corporate assessees, not claiming exemption under Section 11(income from property held for charitable purposes), are amended. <br> <br> <a href="http://www.taxindiaonline.com/pdfnoti/pdfcbdt/pdf2005/it05noti159.pdf">Notification No. 159 </a>and <a href="http://www.taxindiaonline.com/pdfnoti/pdfcbdt/pdf2005/it05noti160.pdf">160 dated 1.6.2005<br> </a><br> <b>Australian Customs on a fishing expedition – under a lady’s skirt</b><br> <br> There was something certainly fishy about a lady passenger arriving at Melbourne International Airport. Customs officers found 51 live tropical fish hidden under her skirt. The officers heard a flipping noise from the vicinity of her waist and then there was no stopping Customs. They found 15 plastic water-filled bags holding fish. Is she a terrorist trying to poison Australia’s fish? Investigations are on and if found guilty, the lady can spend 10 years in jail in addition to about 80,000 Dollars in fine!<br> <br> <font color="#FF6666"><b>Until Tomorrow with more DDT<br> <br> Have a Nice Day. <br> <br> Mail your comments to</b></font> <b>vijaywrite@taxindiaonline.com </b></font></p> </body> </html>