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Withdrawal, deposit and other banking services allowed; senior citizens exempted Indian Banks’ Association (IBA) on Friday said banks on Saturday will not exchange old Rs 500 and Rs 1,000 notes with the new ones to perform other banking related duties, which have been on hold since November 8. Senior citizens would be exempted from this restriction. However, a customer can still withdraw and deposit money at the counters. A customer can withdraw up to Rs 24,000 in a window of seven days, starting from the first day of withdrawal. “All these days our own customers have suffered because we have not been able to do their work. So, we have seen lot of pending work at branches, especially for our existing customers. We, from IBA, have taken a view that on Saturday we shall be exclusively doing work for our own customers. And we will not be doing exchange of notes (for outside customers),” said Rajeev Rishi, chairman, IBA. The IBA decision is only for Saturday and from Monday onwards custom

WIDENING TAX NET Capital gains made on investment in Indian shares beginning April 1, 2017 to be taxed here India and Cyprus have signed the revised tax treaty along with the protocol, plugging a gap that allowed investments routed through the country to escape tax in India. The protocol signed on Friday is expected to come into effect in India, in respect of income derived in fiscal years beginning on or after April 1, 2017. The amended tax treaty provides for source-based taxation of capital gains arising from alienation of shares, implying that capital gains made on investment in shares of Indian companies will be taxed in India. It provides for grandfathering of investments made prior to April 1, 2017, which would continue to be taxed in the country of residence. India has similarly updated its tax treaty with Mauritius, which has a 32.8% share in FDI into India since April 2000. Cyprus has a 2.88% share over this period. “The signing of the revised of the revised India Cyprus tax

The government on Friday put out a revised draft of a bill to check unauthorised chit funds and Ponzi schemes, proposing strict measures such as up to 10 years imprisonment and heavy penalty on operators of such schemes. The revised draft of `Banning of Unregulated Deposit Schemes and Protection of Depositors' Interests Bill, 2016 seeks to provide for a comprehensive code to ban unregulated deposit schemes and protect the interests of depositors. The bill stipulates that any deposit taker who promotes and accept deposits in an unregulated deposit scheme may be punishable with imprisonment for minimum term of two years which may be extended to 10 years and with a fine which may extend to twice the amount of aggregate funds collected from subscribers, members or participants in such schemes or arrangements. The bill also provides for the central government to autho rise creation of an online data base of information on deposit taking activity in India. Public comments on it have bee

SBI Alone Has Seen Rs 1.34L Cr Inflow: Chairman Bhattacharya Total deposit mobilisation by banks crossed Rs 4 lakh crore on November 14, according to the Indian Banks' Association. The amount is expected to have since gone up as State Bank of India, the country's largest lender, has seen “demonetisation deposits“ grow from Rs 1.04 lakh crore on November 14 to Rs 1.34 lakh crore at 4pm on November 18. According to SBI chairman Arundhati Bhattacharya, a large part of the deposits would be withdrawn as depositors get back to spending. But 10-15% of the money that citizens have been forced to deposit in banks should stay back, she said. Speaking to TOI, Bhattacharya said that SBI has done 11 crore transactions since demonetisation and has collected deposits of Rs 1.34 lakh crore. Part of the reason for the higher number of transac tions was that a large number of citizens were turning up to exchange notes, with several suspected to be repeat visitors. According to Bhattacharya, th

NEW DELHI With the united opposi tion attacking the ruling dispensa tion in Parliament over the demo netisation issue, the government is unlikely to bring three bills related to GST in the coming days and hopeful of pushing them n latter half of the Winter session which began on Wednesday. The government is keen to push the passage of three legislations related to the main GST bill in the ongoing Winter session, as Parliamentary nod for these bills is must for rolling out GST from the target date of April 1, 2017. The three bills related to GST are--the Central Goods and Services Tax Bill, the Integrated Goods and Services Tax Bill, the Goods and Services Tax (Compensation for Loss of Revenue) Bill.  17TH NOVEMBER, 2016, THE ECONOMIC TIMES, NEW DELHI

NEW DELHI: The government has announced a new rule to prevent people from making multiple cash deposits in their bank accounts without quoting the PAN. Till now, the limit for cash deposit without PAN was Rs 50,000 per transaction. A lot of people were depositing less than Rs 50,000 per day to escape the PAN provision. But a circular issued on Tuesday says deposits made between 9 Nov and 30 Dec 2016 will require a PAN if the combined sum exceeds Rs 2.5 lakh. This clarifies the misconception that one can deposit cash in multiple batches of less than Rs 50,000 each and escape mentioning the PAN. The CBDT has also made changes in the (AIR) Annual Information Return rules. Till now, banks and post office branches were supposed to report to the tax department if an individual made cash deposits of Rs 10 lakh in a year. During the period 9 November to 30 December, this limit has been lowered to Rs 2.5 lakh. If the cash deposits exceed this limit, the bank or post office will automatically r

Banks ran out of currency in the Capital and elsewhere, although some cities reported that queues had shortened. MUMBAI: The money flooding into banks as people rush to deposit Rs 500 and Rs 1,000 notes has resulted in such a massive bonanza that it’s pulling rates down, bankers said. Thus the longstanding complaint of the Reserve Bank of India (RBI) that banks weren’t passing on rate reductions may be addressed soon. Banks ran out of currency in the Capital and elsewhere, although some cities reported that queues had shortened. In Parliament, the opposition parties attacked the government over the withdrawal of Rs 500 and Rs 1,000 notes, saying it was insensitive, caused hardship to people and had unleashed “economic anarchy”. State Bank of India (SBI) reduced rates on deposits from one year to 455 days to 6.90%, down 15 basis points, while keeping the 7% rate for deposits between 211 days to one year unchanged. That may not be great news for those putting their money in banks but le