DDT, no issue number · 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="left"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>03.12.2004</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax announces major changes - More transactions under PAN</b></font></p> <p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>As of now Permanent Account Number (PAN) is to be quoted on the following transactions : </b><br> <br> a) sale or purchase of immovable property valued at five lakh rupees or more;<br> <br> b) sale or purchase of a motor vehicle (four-wheeler)<br> <br> c) Bank deposit, exceeding fifty thousand rupees, <br> <br> d) deposit, exceeding fifty thousand rupees, with Post Office Savings Bank;<br> <br> e) sale or purchase of securities exceeding one lakh rupees <br> <br> f) opening a bank account <br> <br> g) application for installation of a telephone connection <br> <br> h) payment to hotels and restaurants exceeding twenty-five thousand rupees at any one time<br> <br> i) payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand rupees or more during any one day;<br> <br> j) deposit in cash aggregating fifty thousand rupees or more, with a bank;<br> <br> k) payment in cash in connection with travel to any for-eign country of an amount exceeding twenty-five thousand rupees at any one time.<br> <br> <font color="#006633"><b>The scope is now widened with the addition of the following transactions</b></font><br> <br> l) application for credit card;<br> <br> m) payment of an amount of fifty thousand rupees or more to a Mutual Fund for purchase of its units;<br> <br> n) payment of an amount of fifty thousand rupees or more to a company for acquiring shares issued by it;<br> <br> o) payment of an amount of fifty thousand rupees or more to a company or an institution for acquiring debentures or bonds issued by it;<br> <br> p) payment of an amount of fifty thousand rupees or more to the Reserve Bank of India for acquiring bonds issued by it.”;<br> <br> <font color="#006633"><b>What if you don’t have a PAN?</b></font><br> <br> Then, you are required to submit a declaration in Form No 60. One of the questions you have to answer is why you do not have PAN. An address proof is also required to be given along with the declaration. What happens to these declarations? The organisations like banks, post offices etc, collecting these declarations are to forward them to the Commissioner (Central Information Branch) in two instalments by 31st October and 30th April.<br> <br> <font color="#006633"><b>Annual Information Return</b></font><br> <br> The Finance Act, 2004 provided for a new Annual Information return to be filed by certain agencies.<br> <br> If you have<br> <br> ++ Cash deposits aggregating to ten lakh rupees or more in a year in any savings account in a bank.<br> <br> ++ spent more than two lakh rupees through credit card in a year<br> ++ invested more than two lakh rupees in a mutual fund or one lakh in shares or five lakhs in debentures/ bonds<br> ++ Purchased or sold immovable property for more than thirty lakh rupees<br> <br> <b>then , beware, big brother is watching.</b> The Banks, land registrar etc are required to file an annual information return in Form 65 about all these transactions. The department appears to be having plans to outsource the collection of these returns. The rule stipulates that the return is to be filed with the Commissioner or an agency authorised by the Board. The return which is in two parts A and B are to be filed in a floppy/CD with part A on paper too. The specifications of the floppy and CD are also mentioned - floppy (3.5 inch and 1.44 MB capacity) or CD-ROM (650 MB or higher capacity). It is not explained why the CD has to be 650 MB or higher. <b>Further a certificate is to be furnished that the data is clean and virus free. It is not yet stipulated that there would be a penalty if later a virus is found!</b><br> <br> Where can you get all the information about the latest IT changes. Certainly not in the Income Tax website. The website is blissfully ignorant of these changes. In this aspect the CBEC website seems to be a shade better. Of course, CBEC or CBDT, you are sure to find the latest with TIOL.<br> <br> <a href="pdfnoti/pdfcbdt/pdf2004/annualinfo.pdf">See the 17th amendment rules</a>. Some minor changes in forms and rules have been made by the <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2004/it04not286.htm">sixteenth amendment rules</a> also.<br> <br> <font color="#006633"><b>Foreign Trade Policy: Gold loan can be repaid within 180 days instead of 60 days now</b></font><br> <br> With so much happening in Income Tax is any one interested in what’s happening elsewhere? The DGFT has come up with a small concession for exporters of gold jewellery. As per 4.77 of the Handbook, exporters can obtain gold on loan basis and the exporters have the flexibility to fix the price and repay the loan within sixty days from the date of export. Now the sixty days limit is extended to 180 days. <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2004/dgft04pub028.htm">DGFT PUBLIC NOTICE NO 28 / 2004-09</a> Dated: December 1, 2004</font></p> <p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF0000"><b>There are few greater stimuli to human ingenuity than the prospect of avoiding fiscal liability. Experience shows that under this stimulus human ingenuity outreaches Parliamentary prescience.</b></font></font></p> <p align="right"><font color="#FF0000"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Lord Justice Diplock</font></b></font></p> <p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Mail your comments to <b>vijaywrite@taxindiaonline.com </b><br> <br> <b>As our tax departments work(?)/ have a five-day week, so will DDT. </b><br> <br> Have a Nice weekend, see you on Monday. </font></p> <p> </p> </body> </html>