Definitions
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"Appellate Tribunal" means the
Appellate Tribunal constituted under section 252 of the
Income-tax Act, 1961. [Section 94(1)]
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"Assessing Officer" means the
Income-tax Officer or Assistant Commissioner of Income-tax
or Deputy Commissioner of Income-tax or Joint Commissioner
of Income-tax or Additional Commissioner of Income-tax who
is authorised by the Board to exercise or perform all or
any of the powers and functions conferred on, or assigned
to, an Assessing Officer under this Chapter. [Section
94(2)]
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"Banking Cash Transaction Tax" means
tax leviable on the taxable banking transactions under the
provisions of this Chapter. [Section 94(3)]
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"Board" means the Central Board of
Direct Taxes constituted under the Central Board of
Revenue Act, 1963. [Section 94(4)]
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"Person" shall have the same meaning as
in section 2(31) of the Income-tax Act, 1961 and includes
an office or establishment of the Central Government or
the Government of a State. [Section 94(5)]
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"prescribed" means prescribed by rules
made by the Board under this Chapter. [Section 94(6)]
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"Scheduled Bank" means the State Bank
of India constituted under the State Bank of India Act,
1955, a subsidiary bank as defined in the State Bank of
India (Subsidiary Banks) Act, 1959, a corresponding new
bank constituted under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970, or
under section 3 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1980, or any other bank
being a bank included in the Second Schedule to the
Reserve Bank of India Act, 1934. [Section 94(7)]
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"taxable banking transaction" means—
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a transaction, being withdrawal of
cash (by whatever mode) exceeding ten thousand rupees on
any single day by a person from any scheduled bank; or
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a transaction, being purchase of a
bank draft or banker’s cheque or any other financial
instrument on payment of cash exceeding ten thousand
rupees on any single day by a person from any scheduled
bank; or
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a transaction, being receipt of cash
from any scheduled bank exceeding ten thousand rupees on
any single day by a person on encashment of term
deposit, whether on maturity or otherwise, from that
bank. [Section 94 (8)]
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Those words and expressions used but
not defined in this Chapter and defined in the Negotiable
Instruments Act, 1881, the Reserve Bank of India Act,
1934, the Banking Regulation Act, 1949, the Income-tax
Act, 1961, or the rules or regulations made thereunder,
shall apply, so far as may be, in relation to banking cash
transaction tax.
[Section 94 (9)]
Charge and rate of tax
There shall be charged a banking cash
transaction tax, in respect of every taxable banking
transaction of the value exceeding ten thousand rupees and
entered into on or after the 1st day of June, 2005, at the
rate of 0.1 per cent of the value of every such taxable
banking transaction. [Section 95(1)]
The banking cash transaction tax shall be
payable,—
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in respect of taxable banking
transaction, being withdrawal of cash (by whatever mode)
exceeding ten thousand rupees on any single day from any
scheduled bank by the person who withdraws the cash from
the scheduled bank, on the amount of cash withdrawn; or
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in respect of taxable banking
transaction, being purchase of a bank draft or banker’s
cheque or any other financial instrument on payment of
cash exceeding ten thousand rupees on any single day
from any scheduled bank by the person who purchases the
bank draft or banker’s cheque or any other financial
instrument from the scheduled bank, on the amount of
cash deposited; or
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in respect of taxable banking
transaction, being receipt of cash from any scheduled
bank exceeding ten thousand rupees on any single day, on
encashment of term deposit, whether on maturity or
otherwise, from that bank by the person who received the
cash on encashment of term deposit, on the amount of
cash received on encashment of term deposit.
Exception : No banking cash
transaction tax shall be payable if the amount of term
deposit is credited to any account with the bank.
Collection and recovery [Section 97]
Every scheduled bank shall collect the
banking cash transaction tax from every person, being a
person who enters into a taxable banking transaction with
that bank, at the rate specified in section 95.
The banking cash transaction tax
collected during any calendar month shall be paid by every
scheduled bank to the credit of the Central Government by
the fifteenth day of the month immediately following the
said calendar month.
The scheduled bank, who fails to collect
the tax in accordance with the provisions of this section
shall, notwithstanding such failure, be liable to pay the
tax to the credit of the Central Government by the fifteenth
day of the month immediately following the said calendar
month.
Return [Section 98]
Every scheduled bank (i.e., ‘assessee’
for the purpose of this Chapter) is required to:
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within the prescribed time after the
end of each financial year,
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prepare a return in respect of all
taxable banking transactions entered into during such
financial year in the scheduled bank, in such form and
verified in such manner and setting forth such particulars
as may be prescribed and
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deliver or cause to be delivered to the
Assessing Officer or to any other authority or agency
authorised by the Board in this behalf.
Where any assessee fails to furnish the
return within the prescribed time, the Assessing Officer may
issue and serve a notice to such assessee, requiring him to
furnish the return.
Revised return
Any assessee who has not furnished the
return within the time allowed, or having furnished a
return, discovers any omission or wrong statement therein,
may furnish a return or a revised return, as the case may
be, at any time before the assessment is made.
Assessment [Section 99]
The Assessing Officer may serve on any
assessee, who has furnished a return [u/s. 98(3)(1)] or upon
whom a notice has been served [u/s. 98(2)] (whether a return
has been furnished or not), a notice requiring him to
produce or cause to be produced on a date to be specified
therein such accounts or documents or other evidence as the
Assessing Officer may require, for the purposes of making an
assessment.
The Assessing Officer may, from time to
time, serve further notices requiring the production of such
further accounts or documents or other evidence as he may
require.
The Assessing Officer, after considering
such accounts, documents or other evidence, if any, as he
has obtained and after taking into account any other
relevant material which he has gathered, shall, by an order
in writing, assess the value of taxable banking transactions
during the relevant financial year and determine the amount
of banking cash transaction tax payable or refundable on the
basis of such assessment.
However, no assessment shall be made
under this sub-section after the expiry of two years from
the end of the relevant financial year.
On assessment being completed and in case
any amount is refunded to it on assessment, every assessee,
shall, within such time as may be prescribed, refund such
amount to the concerned person from whom such amount was
collected.
Amendment or Rectification of mistake
apparent from the record [Section 100]
The Assessing Officer may, with a view to
rectifying any mistake apparent from the record, amend any
order passed by him.
However, this rectification can be
carried out only within one year from the end of the
financial year in which the order sought to be amended was
passed. [Section 100 (1)]
Where any matter has been considered and
decided in any proceeding by way of appeal, the Assessing
Officer passing such order may, notwithstanding anything
contained in any law for the time being in force, amend the
order, in relation to any matter other than the matter which
has been so considered and decided. [Section 100 (2)]
The Assessing Officer may, subject to the
other provisions of this section, make an amendment [u/s.
100 (1)] of his own motion; or if any mistake is brought to
his notice by the assessee. [Section 100(3)]
No amendment, which has the effect of
enhancing an assessment or reducing a refund or otherwise
increasing the liability of the assessee, shall be made,
unless the Assessing Officer concerned has given notice to
the assessee of his intention so to do and has allowed the
assessee a reasonable opportunity of being heard.
[Section 100(4)]
The order of amendment passed by the
Assessing Officer, shall be in writing.
[Section 100(5)]
Where any such amendment has the effect
of reducing the assessment, the Assessing Officer shall,
subject to the other provisions of this Chapter, make any
refund, which may be due to such assessee. [Section 100
(6)]
Where any such amendment has the effect
of enhancing the assessment or reducing the refund already
made, the Assessing Officer shall, make an order specifying
the sum payable by the assessee and the provisions of this
Chapter shall apply accordingly.
Interest on delayed payment
[Section 101]
Every assessee who fails to credit the
banking cash transaction tax or any part thereof, to the
account of the Central Government within the period
specified, shall pay simple interest at the rate of one per
cent of such tax for every month or part of a month by which
such crediting of the tax or any part thereof is delayed.
Penalty for failure to collect or pay tax
[Section 102]
Any assessee who has failed to collect
the whole or any part of the banking cash transaction tax as
required shall be liable to pay by way of penalty in
addition to paying the tax or interest, a sum equal to the
amount of banking cash transaction tax that it has failed to
collect.
Any assessee who having collected the
banking cash transaction tax, fails to pay such tax to the
credit of the Central Government as required shall be liable
to pay by way of penalty; a sum of one thousand rupees for
every day during which the failure continues, however, that
the penalty under this clause shall not exceed the amount of
banking cash transaction.
No order imposing a penalty shall be made
unless the assessee has been given a reasonable opportunity
of being heard.
Penalty for failure to file return [Section
103]
If an assessee fails to furnish in due
time the return which it is required to furnish (u/s. 98(1)]
or by notice [u/s. 98(2)], it shall be liable to pay, by way
of penalty, a sum of one hundred rupees for every day during
which the failure continues.
No order imposing a penalty shall be made
unless the assessee has been given a reasonable opportunity
of being heard.
Penalty for failure to comply with notice
[Section 104]
If the Assessing Officer, in the course
of any proceedings under this Chapter, is satisfied that any
person has failed to comply with a notice u/s. 99(1), he may
direct that such person shall pay, by way of penalty, in
addition to any banking cash withdrawal transaction tax and
interest, if any, payable by him, a sum of ten thousand
rupees for each such failure.
No order imposing a penalty shall be made
unless the assessee has been given a reasonable opportunity
of being heard.
Penalty not to be imposed in certain
cases [Section 105]
No penalty shall be imposable for any
failure referred to in sections 102, 103 and 104, if the
assessee proves that there was reasonable cause for the said
failure.
Application of certain provisions of
Income-tax Act, 1961 [Section 106]
The provisions of the following sections
of the Income-tax Act, 1961, as in force from time to time,
shall apply, so far as may be, in relation to banking cash
transaction tax as they apply in relation to income-tax:—
Sections 120, 131, 133A, 156, 178, 220 to
227, 229, 232, 260A, 261, 262, 265 to 269, 278B, 282 and 288
to 293.
Appeals to Commissioner of Income-tax
(Appeals) [Section 107]
An assessee aggrieved by any assessment
order passed by the Assessing Officer u/s. 99, or u/s.100,
or by an order levying penalty or by an assessee denying his
liability to be assessed under this Chapter, shall be
entitled to file an appeal before the Commissioner of
Income-tax (Appeals) within thirty days from the date of
receipt of the order of the Assessing Officer.
The appeal shall be filed in the
prescribed form and shall be verified in the prescribed
manner and shall be accompanied by a fee of one thousand
rupees.
Where an appeal has been filed under the
provisions of sub-section (1) of this section, the
provisions of sections 249 to 251 of the Income-tax Act,
1961, shall, as far as may be, apply.
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Section 249 of the Income-tax Act deals
with the form and limitation.
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Section 250 of the Income-tax Act deals
with the procedure in appeal.
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Section 251 of the Income-tax Act deals
with the powers of the Commissioner of Income-tax
(Appeals).
Appeals to the Income-tax Appellate
Tribunal [Section 108]
Any assessee aggrieved by an order passed
by a Commissioner of Income-tax (Appeals) will have a right
to file a second appeal to the Appellate Tribunal against
such order.
The Commissioner of Income-tax may, if he
objects to any order passed by the Commissioner of
Income-tax (Appeals), direct the Assessing Officer to appeal
to the Appellate Tribunal against such order.
The appeal shall be in the prescribed
form, verified in the prescribed manner, and shall be
accompanied by a fee of one thousand rupees and shall be
filed within sixty days of the date on which the order
sought to be appealed against is received by the assessee,
or by the Commissioner of Income-tax, as the case may be.
Where an appeal has been filed before the
Appellate Tribunal, the provisions of sections 252 to 255 of
the Income-tax Act, 1961, shall, as far as may be, apply.
Imprisonment and fine, in case of false
statement in verification, etc. by any person. [Sections
109 and 110]
If a person (not necessarily an assessee)
makes a statement in any verification under this Chapter or
any rule made thereunder, or delivers an account or
statement, which is false, and which he either knows or
believes to be false, or does not believe to be true, he
shall be punishable with imprisonment for a term which may
extend to three years and with fine.
Notwithstanding anything contained in the
Code of Criminal Procedure, 1973, an offence punishable
under this section shall be deemed to be non-cognizable
offence, within the meaning of that Code.
No proceeding against any person for any
offence under section 109 shall be carried except with the
previous sanction of the Chief Commissioner of Income-tax.
Power to the Central Government to make
Rules [Section 111]
The Central Government may, by
notification in the Official Gazette, make rules for
carrying out the provisions of this Chapter.
The Central Government may, without
prejudice to the generality of the above power, make such
rules to provide for all or any of the following matters,
namely:—
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the time within which the return shall
be delivered or caused to be delivered to the Assessing
Officer or to any other agency and (b) the form and the
manner in which such return shall be furnished.
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the time within which the return shall
be furnished on receipt of notice u/s. 98(2);
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the time within which refund shall be
made u/s. 99(3);
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the form in which an appeal u/s. 107 or
108 may be filed and the manner in which they may be
verified;
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any other matter which by this Chapter
is to be, or may be, prescribed.
The rules made by the Central Government,
under this Chapter, shall be laid, as soon as may be after
it is made, before each House of Parliament, while it is in
session for a total period of thirty days which may be
comprised in one session or in two or more successive
sessions, and if, before the expiry of the session
immediately following the session or the successive sessions
aforesaid. If both Houses agree in making any modification
in the rule or both Houses agree that the rule should not be
made, the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be
without prejudice to the validity of anything previously
done under that rule.
Power to the Central Government to remove
difficulties [Section 112]
In case if any difficulty arises in
giving effect to the provisions of this Chapter, the Central
Government has been given the power to remove the
difficulty, by order published in the Official Gazette.
However, such order shall not be inconsistent with the
provisions of this Chapter.
Restriction: No such order shall be
made after the expiry of a period of two years from the date
on which the provisions of this Chapter come into force.
Every order made by the Central
Government under this section shall be laid, as soon as may
be after it is made, before each House of Parliament.
