The Hindu Business Line : Submissions of transaction details to I-T dept

While the taxman has issued an ultimatum to the branch managers for submission of details of transactions as required under Section 139 (A) of the Income Tax Act 1961 within a week or pay a penalty of Rs 10,000 as provided under Section 272B, bankers are in a dilemma as the regulator, had, through the Indian Banks Association advised them to put the matter on hold.

It may be recalled that the Income-Tax Department had, in August 2003, directed all banks to furnish information on an array of customer transactions for Rs 50,000 and beyond during the 2002-03 fiscal.

The information that the bankers are required to furnish include deposit or withdrawal of cash of Rs 50,000 or more, purchase of bank draft by paying cash for an amount aggregating to Rs 50,000 or more during any one day, term deposit exceeding Rs 50,000 (either in cash or otherwise).

In all such cases, the bank is required to give the customer details (name, address, and amount of the transaction with the date), Permanent Account Number or copy of Form no. 60/61.

It is reliably learnt that the bankers are unable to decide at this juncture and have appealed to the higher-ups to take up the matter with the IBA and the RBI, who in turn can bring it to the notice of the Ministry.

The entire issue came to the fore when the banks here received a notice from the income-tax officer, Coimbatore, last week, demanding explanation for not furnishing details of customer transactions (for the half-year ending September 30, 2003) as required under Section 139(A) of the IT Act.

(Section 139(A) requires every person to quote his Permanent Account Number or General Index Number or make a declaration in Form 60 for specified transactions)

The branch heads were asked to appear in person or through an authorised representative and explain the reason for the delay in submitting the details.

Industry insiders told Business Line that the grilling was on for the third successive day with the bankers trying to explain about the RBI's circular - advising the banks to hold the matter in abeyance.

According to reliable information, the income-tax officer's contention was that he had not received any direction from the Central Board of Direct Taxes (CBDT).

While bankers fervently wish that the CBDT intervenes to resolve the issue, they are unable to put off the exercise of culling out information. "As it is banks are under pressure, tremendous pressure as the number of such transactions is large," a bank official lamented.

It is learnt that the I-T officer, Thiruvananthapuram recently, issued a similar notice. But after the bankers explained their stance with the RBI's circular, the matter was not taken up further.

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