Important Changes On Note/Income Tax Related Policy

In a bid to ease the cash crunch, 

Government today allowed the dispensing cash of up to Rs 2,000 through debit card swipe at select petrol pumps. The facility will be available at 2,500 petrol pumps.

The amount up to Rs 2000 per day per person in cash can be dispensed against swiping of debit card from select petrol pumps where POS machines of SBI are already available,” .

The exchange limit for old Rs 500 and Rs 1000 notes has been reduced from Rs 4,500 to Rs 2,000 to avoid misuse. 

Around 22,500 ATMs will be re-calibrated today.

Families can withdraw Rs2.5 lakh for weddings from one account .

Farmers can withdraw up to Rs25,000 a week.

Centre moves the Supreme Court seeking a stay of proceedings in various high courts and other courts against its demonetisation decision. It agrees to hear on Friday the plea of Centre against proceedings in other courts except the apex court.

The task force for reactivation of ATMs headed by RBI deputy governor S.S. Mundra, met on Tuesday and instructed banks on how to go about the ATM recalibration process. 

Banks have been asked to recalibrate 12,500 ATMs every day. While the task of completing the entire process of recalibrating almost 2.5 lakh ATMs may take some time, banks have been told to focus on completing the task in the top 30 cities by the end of this month.

The income-tax (I-T) department has made it mandatory to link the permanent account number (PAN) to cash deposits above Rs50,000 in a day and those that aggregate to more than Rs2.5 lakh from 9 November to 30 December. This means that tax evaders cannot get away by making multiple deposits of less than Rs50,000 without providing their PAN—a common practice at present.

Banks and post offices will be required to report all deposits exceeding Rs2.5 lakh in the annual information return (AIR) sent to investigative agencies, as against the current ceiling of Rs10 lakh. These are part of the changes that have been notified by the I-T department after demonetisation.

A new clause on deposits in current accounts has also been introduced, wherein cash deposits of more than Rs12.5 lakh will have to be reported by a bank.

The central bank is exhorting banks, public and private, to reuse notes that had been taken out of circulation and were bound for the shredder and then the dumping ground.