Skip to main content

Banks to now match original IDs with photocopies

Banks to now match original IDs with photocopies
The government has made it mandatory for banks and financial institutions to check the original identification documents of individuals dealing in cash above the prescribed threshold, to weed out the use of forged or fake copies.The department of revenue in the finance ministry has issued a notification making an amendment to the Prevention of Money-laundering (Maintenance of Records) Rules.
The new rule requires the reporting entity to compare “the copy of officially valid (identification) document so produced by the client with the original and recording the same on the copy”.The Prevention of Money Laundering Act (PMLA) forms the core of the legal framework put in place by India to combat money laundering and generation of black money.
PMLA and its rules impose obligation on reporting entities like banks, financial institutions and intermediaries to verify identity of clients, maintain records and furnish information to Financial Intelligence Unit of India.According to Rule 9, every reporting entity shall at the time of commencement of an account-based relationship, identify its clients, verify their identity and obtain information on the purpose and intended nature of the relationship.
Intermediaries like stock brokers, chit fund companies, cooperative banks, housing finance institution and nonbanking finance companies are also classified as reporting entities. Biometric identification number Aadhaar and other official documents are required to be obtained by the reporting entities from anyone opening a bank account and for any financial transaction of Rs 50,000 and above.
The same is also required for all cash dealing of more than Rs 10 lakh or its equivalent in foreign currency , cash transactions where forged or counterfeit currency notes have been used and all suspicious transactions.All cross border wire transfers of more than Rs 5 lakh in foreign currency and purchase and sale of immovable property valued at Rs 50 lakh or more also fall under this category,according to the reporting rules.  
The Economic Times, New Delhi  ,23th October 2017


Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Deposit gush:-CA Institute Bats for Special Audit

Obligation for the Month of April

Event DateActApplicable FormObligation07/04/2017Income TaxForm No.27C (TCS)Submission of Forms received in Mar  to IT Commissioner10/04/2017ExciseER-1Excise Return ER-1 for Non SSI assessees for Mar10/04/2017ExciseER-2Excise Return ER-2 for EOUs for Mar10/04/2017ExciseER-3Submission of Excise Return ER-3 by SSI units for Mar quarter10/04/2017ExciseER-6Excise Return ER-6 by units paying duty >  1 crore (CENVAT + PLA) for Mar12/04/2017D-VATBE - 2Advance information for 2nd fortnight of APR of functions with booking cost > Rs 1 lakh in Banquet Halls,hotels etc. in Delhi15/04/2017Income TaxForm 15CCStatement by Banks etc. in respect of foreign remittances during the quarter15/04/2017D-VATDVAT-20Payment of DVAT TDS for Mar15/04/2017Providend FundElectronic Challan cum Return (ECR)E-Payment of PF for Mar21/04/2017ESIESI ChallanPayment of ESI of Mar (Applicable for Salary upto Rs. 21,000 instead of 15,000 earlier)21/04/2017M-VATMVAT ChallanPayment of MVAT & WCT TDS for Mar21/04/201…