TaxTMI 
TaxTMI 
Chapter VII of Finance Act, 2005 - Banking Cash Transaction Tax
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....e (31) of section 2 of the Income tax Act and also includes an office or establishment of the Central Government or the Government of a State. The aforesaid clause also proposes to define the taxable banking transactions as follows:- • a transaction of withdrawal of cash exceeding ten thousand rupees on any single day by a person from any scheduled bank; or • a transaction of purchase of a bank draft or a banker's cheque or any other financial instrument on payment of cash exceeding ten thousand on a single day by a person from any scheduled bank; or • receipt of cash from a scheduled bank exceeding ten thousand rupees on any single day by a person on encashment of term deposit, whether ....
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....cash exceeding ten thousand, the amount of cash deposited; (iii) in respect of receipt of cash on encashment of term deposit, the amount of cash received on encashment of term deposit. Clause 97 of the Bill proposes to provide that every scheduled bank shall collect the banking cash transaction tax at the specified rate, from every person entering into a taxable banking transaction with that bank. The banking cash transaction tax so 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 said section also provides that any scheduled bank that fails to collect the tax shall be liable....
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.... also provides that in cases where any refund has been issued to an assessee, the assessee shall refund the same to the person from whom it was collected within the prescribed time. Clause 100 of the proposed Chapter provides that the Assessing Officer may amend any order passed by him under the provisions of the said Chapter with a view to rectify any mistake apparent from record, within one year from the end of the financial year in which the order sought to be amended was passed. It is also proposed that any amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall be made only after giving the assessee a reasonable opportunity of being heard....
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....ued under sub- clause (2) of clause 100 of the proposed Chapter shall be liable to pay by way of penalty a sum of hundred rupees for every day during which the failure continues. Clause 105 of the proposed Chapter provides that no penalty will be imposable under any of the above sections if the assessee proves that there was reasonable cause for the failure to comply with the provisions of the said clause. It is also proposed that no order imposing a penalty under the proposed Chapter shall be made unless the assessee has been given a reasonable opportunity of being heard. Clause 106 of the proposed Chapter provide that sections 120, 131, 133A, 156, 178, 220 to 227, 229, 232, 260A, 261, 262, 265 to 269, 278B, 282 and 288 to 293 ....