The 50-day window for depositing the old notes in bank accounts and post offices expires tomorrow

Source: Minimum Rs 10,000 fine for holding old notes, no jail term

Cabinet today approved ordinance to impose penalties and jail term up to four years (in certain cases) on anyone possessing  the demonetized Rs.500 & Rs.1000 notes after 31st March, 2017.

The ordinance, named as ‘The Specified Bank Notes Cessation of Liabilities Ordinance’, is to extinguish liability of government and RBI on the demonetised high-denomination notes

Government increased the threshold limit of salary for ESI applicability from Rs.15,000/- to Rs.21,000/-. The same will be applicable from 01st January, 2017.

To read the notification please click the link below:

https://drive.google.com/open?id=0BwfaVqFwg9yDUDhqekFtcVJWZnM

 

RBI today withdraws restriction in depositing old currency notes in KYC Compliant accounts by making amendment to the notification issued yesterday. RBI Circular states that the provisions of the Circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 circular at sub para (i) and (ii) will not apply to fully KYC compliant accounts. The provisions mentioned in the above circular which stands withdrawn today is given below:

1. Tenders of SBNs in excess of ₹ 5000 into a bank account will be received for credit only once during the remaining period till December 30, 2016. The credit in such cases shall be afforded only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation. The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed.

2. Tenders of SBNs up to ₹ 5000 in value received across the counter will allowed to be credited to bank accounts in the normal course until December 30, 2016. Even when tenders smaller than ₹ 5000 are made in an account and such tenders taken together on cumulative basis exceed ₹ 5000 they may be subject to the procedure to be followed in case of tenders above ₹ 5000, with no more tenders being allowed thereafter until December 30, 2016.

To view the notification issued today, please click the link below:

https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10790&Mode=0

 

RBI  issued notification RBI/2016-17/189 DCM (Plg) No. 1859/10.27.00/2016-17  dated 19-12-2016 imposing restriction deposits of old currency notes of Rs.500 & Rs.1000 into bank accounts during the remaining period till 30th December, 2016.

The main points of the notification are as follows:

1. Tenders of Specified Bank Notes(SBNs; withdrawn currency of Rs.1000 & Rs.500) in excess of ₹ 5000 into a bank account will be received for credit only once during the remaining period till December 30, 2016. The credit in such cases shall be afforded only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation. The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in Core Banking System to that effect so that no more tenders are allowed.
2. Tenders of SBNs up to ₹ 5000 in value received across the counter will allowed to be credited to bank accounts in the normal course until December 30, 2016. Even when tenders smaller than ₹ 5000 are made in an account and such tenders taken together on cumulative basis exceed ₹ 5000 they may be subject to the procedure to be followed in case of tenders above ₹ 5000, with no more tenders being allowed thereafter until December 30, 2016.
3. It may also be ensured that full value of tenders of SBNs in excess of ₹ 5000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant credits may be restricted up to ₹ 50,000 subject to the conditions governing the conduct of such accounts.
4. The above restrictions shall not apply to tenders of SBNs for the purpose of deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
5. The equivalent value of specified bank notes tendered may be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity.
6. The equivalent value of specified bank notes tendered may be credited to a third party account, provided specific authorisation therefor accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually tendering.

 

To view the Complete notification, please click the link below:

https://drive.google.com/open?id=0BwfaVqFwg9yDdElJNGtSbnNORzQ

 

 

Those making disclosure would pay 50% tax on bank deposits made in scrapped currencies since Nov 9

Source: Black money holders get last chance to disclose till March 2017

The new scheme forms a part of the Taxation Laws (Second Amendment) Bill 2016, passed in the Lok Sabha on Nov 29

Source: Unaccounted cash, deposits can be disclosed under new scheme with 50% tax before April 1

In a statement released to media, Finance Minister Arun Jaitley on Tuesday hinted that tax rates might be brought down as demonetisation is likely to bring in higher tax revenues from unaccounted wealth.

“Once they are substantially digital, they get caught in tax net. Therefore, the future taxation level would be much higher than what is currently being collected. This would also enable the government at some stage to make taxes more reasonable, which will apply to both direct and indirect taxes,” he said.

Finance Minister also expressed hope that, the interest rate of loans will also come down as banks received large amount as deposits.He also informed that the turn around in the availability of currency notes would be solved in three weeks as RBI will make available new currency notes. The situation will significantly ease by Jan 10, 2016.

Finance Minister Mr.Arun Jaitley announced  incentives for using cards in various transactions. Here are few announcements made by him:

1. A reduction of 0.75% will be given for buying Petrol & Diesel in digital mode
2. Monthly, seasonal suburban railway tickets purchased through digital mode to get 0.5% discount effective Jan 1
3. Insurance cover worth Rs 10 lakh for those who book railway tickets online
4. Payments through digital mode for railways catering, accommodation, retiring room to get 5% discount
5. Buying general, life insurance policies from PSU insurers’ websites and premium to get 10% and 8% discount, respectively
6. Govt to expedite digital switchover; 2 POS machines will be given to villages with 10K population, 1 lakh villages to be selected
7. 10% discount on digital payments for RFID or fastags for highway toll
8. Digital transactions of up to Rs 2,000 will be exempted from service tax
9. NABARD will give Rupay card to people who have Kisan Credit Card
10. Railways to give 5% discount on catering, retiring room on payment by digital mode