To fulfil requirements of rural areas, banks have been asked to supply notes of smaller denominations, said MoS Finance Meghwal
Source: Demonetisation: Govt not planning to extend Dec 30 cut-off for cash deposits
Month: November 2016
Loksabha passes Income Tax Amendment bill
The Lok Sabha, today (29-11-2016) passes Finance Bill to amend Income Tax to impose of tax on deposits made post demonetization (post 08-11-2016 deposits of Rs.1000 & Rs.500 notes) without debate.
The government on Monday had proposed to levy a total tax, penalty and surcharge of 50% on the amount deposited post demonetization while higher taxes and stiffer penalty of up to 85% await those who don’t disclose but are caught.
For more details please see our earlier post in this regard. Please click the link below to read more about the Finance Bill.
RBI relaxes cash withdrawal rule from today
RBI relaxed the cash withdrawal limits from today for those who are depositing amounts from today in legal tender (meaning not the banned Rs.1000 and Rs.500 notes). They can withdraw any amount subject to a ceiling of amounts deposited in legal tender from 29-11-2016. The restriction of Rs.24000 will not apply for such withdrawals.
The amount so withdrawn, will be given to he customer preferably in high value denominations of Rs.2000 & Rs.500.
The decision by the RBI is on the consideration that, due the withdrawal limits people are hesitating to deposit their monies into the bank account due to the withdrawal limits.
Income tax notices to religious, charitable trusts
The notice also advises the management of such institutions not to deal with Rs 1,000 and Rs 500 notes
Pay 50% Tax, Lock 25% for 4 years on your unaccounted money
The Finance Minister today introduce a bill in Parliament to amend Income Tax Act, providing window to black money hoarders proposing to tax 50% tax, penalty and surcharge of 50% on the amount deposited on the amount deposited post demonetization, while higher taxes and stiffer penalty of up to 85% await those who don’t disclose but are caught.
The bill also provides for black money declarants a mandatory depositing of 25% of the amount disclosed in anti-poverty scheme without interest and a four-year lock-in period.
Those who choose to declare their ill-gotten wealth stashed till now in banned 500 and 1,000 rupee notes under the Pradhan Mantri Garib Kalyan Yojana 2016, will have to pay a tax at the rate of 30% of the undisclosed income. Additionally, a 10% penalty will be levied on the undisclosed income and surcharge called PMGK Cess at the rate of 33% of tax (33% of 30%).
Further, the declarants have to deposit 25% of the undisclosed income in a scheme to be notified by the government in consultation with the Reserve Bank of India (RBI).
For those who continue to hold onto undisclosed cash and are caught, existing provisions of the Income Tax law will be amended to provide for a flat 60% tax plus a surcharge of 25% of tax (15%), which will amount a levy of 75%.
Besides, if the assessing officer decides he can charge a 10% penalty in addition to the 75% tax
The disclosures in PMGKY scheme will ensure that no questions will be asked about the source of fund. It would ensure immunity from wealth tax, civil laws and other taxation laws. But there is no immunity from FEMA, PMLA, Narcotics, and black money act.
Deposits which have been already made from November 10 will be covered under PMGKY. “Last date we will notify after the bill is passed but it is likely to be December 30. PMGKY will come in as a new Chapter 9 in Finance Act 2016.
Source: Business Standard/Mathrubhumi
Now, bank deposits since Nov 8 may attract 60% income tax
Govt extends exemptions till December 15; bans Rs 1,000 notes, exchange of old currency
Source: Now, bank deposits since Nov 8 may attract 60% income tax
Exchange of old Rs 500, Rs 1,000 notes to continue only at RBI counters
The announcement comes after the govt stopped the over-the-counter exchange of cash at banks with immediate effect
Source: Exchange of old Rs 500, Rs 1,000 notes to continue only at RBI counters
SBI revised(Reduced) the Interest Rate for Domestic Term Deposit from today
The Interest rate for Domestic Term Deposits was revised/reduced by State Bank of India from today i.e., 24th November, 2016. Please see below for the existing and revised rates
DOMESTIC TERM DEPOSITS
Revision in Interest Rates on Domestic Bulk Term Deposits (Rs.1-10 crs) W.E.F. 24.11.2016
The revised Interest rates on ‘Domestic Bulk Term deposits (Rs.1-10 crs) with effect from 24thNovember 2016 will be as per following table:
(All figures in % per annum)
| Tenors | Existing w.e.f. 17.11.2016 | Revised w.e.f 24.11.2016 | Existing for Senior Citizen w.e.f 17.11.2016 | Revised for Senior Citizen w.e.f. 24.11.2016 |
|---|---|---|---|---|
| 7 days to 45 days |
5.00
|
3.75
|
5.50
|
4.25
|
| 46 days to 179 days |
5.50
|
3.85
|
6.00
|
4.35
|
| 180 days to 210 days |
5.75
|
3.85
|
6.25
|
4.35
|
| 211 days to less than 1 year |
5.75
|
4.00
|
6.25
|
4.50
|
| 1 year to 455 days |
6.00
|
4.25
|
6.50
|
4.75
|
| 456 days to less than 2 years |
6.00
|
4.25
|
6.50
|
4.75
|
| 2 years to less than 3 years |
6.00
|
4.25
|
6.50
|
4.75
|
| 3 years to less than 5 years |
5.50
|
4.25
|
6.00
|
4.75
|
| 5 years and up to 10 years |
5.50
|
4.25
|
6.00
|
4.75
|
Revision In Interest Rates On Domestic Bulk Term Deposites (above Rs. 10 crs) W.E.F. 24.11.2016
The revised Interest rates on ‘Domestic Bulk Term deposits (above Rs. 10 crs) with effect from 24thNovember 2016 will be as per following table:
(All figures in % per annum)
| Tenors | Existing w.e.f. 17.11.2016 | Revised w.e.f 24.11.2016 | Existing for Senior Citizen w.e.f 17.11.2016 | Revised for Senior Citizen w.e.f. 24.11.2016 |
|---|---|---|---|---|
| 7 days to 45 days |
4.75
|
3.75
|
5.25
|
4.25
|
| 46 days to 179 days |
5.25
|
3.85
|
5.75
|
4.35
|
| 180 days to 210 days |
5.50
|
3.85
|
6.00
|
4.35
|
| 211 days to less than 1 year |
5.50
|
4.00
|
6.00
|
4.50
|
| 1 year to 455 days |
5.50
|
4.25
|
6.00
|
4.75
|
| 456 days to less than 2 years |
5.50
|
4.25
|
6.00
|
4.75
|
| 2 years to less than 3 years |
5.50
|
4.25
|
6.00
|
4.75
|
| 3 years to less than 5 years |
5.00
|
4.25
|
5.50
|
4.75
|
| 5 years and up to 10 years |
5.00
|
4.25
|
5.50
|
4.75
|
Premature payment of Bulk term deposits:
Premature penalty for Bulk Term Deposits for all tenors will be 1%. It will be applicable for all new deposits including renewals. There is no discretion for reduction/waiver of penalty for premature withdrawal of term deposit
The revised rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on NRO term deposits shall be aligned as per the rates for domestic term deposits. These rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks.
To see the the SBI website posting please click the link below:
https://www.sbi.co.in/portal/web/interest-rates/domestic-term-deposits
Source: http://www.sbi.co.in
Withdraw up to Rs 2.5 lakh for weddings: Govt’s new demonetisation rules
The limit for over-the-counter exchange of old Rs 500 and Rs 1,000 notes would be reduced to Rs 2,000 from Nov 18
Source: Withdraw up to Rs 2.5 lakh for weddings: Govt’s new demonetisation rules
Limit for exchange of old notes reduced to Rs.2000 from Rs.4500 from Friday (18th Nov, 2016)
The Central Government today announced that the limit for exchange of old notes over the counter was reduced to Rs.2000/- from the existing Rs.4500/- with effect from tomorrow i.e., 18th November, 2016.
There is no change in the limit set for withdrawal of money from the Bank Accounts. The same was announced today by Mr.Sakthikanta Das, Secretary of Department of Economic Affairs, Govt. of India.
Karthik & Sunil 