Page 14 - Banking Finance August 2017

ROUNDUP

Rs. 57,000 crore saved by Cash deposits during demonetisation to be verified
the Direct Benefit Trans- CBDT is to prepare and review a list of persons required to file Statement of
Financial Transactions for cash deposits into their
fer scheme bank accounts between November 11 and Decem-

According to government data, of the ber 30, 2016. It will also identify persons who have
Rs 57,029 not filed or have filed inaccurate statements on
crore saved cash deposits. An estimated 36.1 % of the Perma-
under DBT in nent Account Number (PAN) holders that made
2016-17, the cash transactions during demonetisation had not filed income tax returns, ac-
LPG subsidy cording to official data.
scheme 'Pahal' accounted for Rs
29,769 crore. As per the latest data Enhanced disclosure in Form 3CD
from Cabinet Secretariat, the New Form 3CD reflects enhanced disclosure requirements specifically in relation
MGNREGS saved Rs 11,741 crore, and to electronic clearing systems. Additional information
Rs 399 crore were saved in DBT trans- would now be required to be given where the repay-
fers for the National Social Assistance ment of loan or deposit or any specified advance ex-
Programme, which deals with, among ceeding prescribed limit is received otherwise than by
other things, old age and widow pen- a cheque or bank draft or use of electronic clearing sys-
sions, and the latest data from the tem through a bank account. The revised form also spe-
Cabinet Secretariat showed. cifically refers to information on use of electronic clearing system through a bank
account in addition to payments by way of account payee cheque or bank draft.
Sensex scales 32,000
Credit card bill payment exempt from cash dealing
peak

The Sensex breached the 32,000- limit
point mark Restrictions on cash dealings of Rs2 lakh or more will not apply to credit card bill
for the first payments, business correspondents appointed by banks
time and and issuers of prepaid instruments, the revenue depart-
closed re- ment has said. The Finance Act 2017 banned cash trans-
cently at action of Rs2 lakh or above with effect 1 April, with some
32,037.38, up 0.73% close. The Nifty exceptions. Through a notification, the income-tax de-
closed just 8.3 points short of 9,900. partment has exempted five entities from the purview
Supportive global markets, which of this section.
gained after Federal Reserve chair These include receipts by a business correspondent on behalf of a banking com-
Janet Yellen said the US central bank pany or cooperative bank; receipt by a company or institution issuing credit cards
will hike rates gradually, also helped. against bills raised in respect of one or more credit cards; receipt from an agent
by an issuer of prepaid payment instruments; receipt by a white label ATM op-
SEBI eases M&A rules erator from retail outlet; receipt which is not includible in the total income un-
After SEBI's Board Meeting, it an- der clause (17A) of section 10 of the I-T Act, 1961, have been excluded from the
nounced ex- purview of the Section 269ST.
emption to
buyers of GST cess hike on cigarettes
shares in dis- The GST council is focusing on increasing the cess on cigarettes to offset reduced
tressed com- tax revenue from the product. Accordingly, the tax burden
panies from the requirement of mak- on cigarettes will go up by Rs4.8-7.9 per 10 sticks, depend-
ing an open offer even if the pur- ing on their length and whether or not they have filters.
chase triggers such an event under "Each state specifically responded positively (to the proposal)
the takeover code. and this change will be effected from midnight," said Jaitley.

14 | 2017 | AUGUST | BANKING FINANCE

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