TMI Tax Updates - e-Newsletter
November 10, 2016
Case Laws in this Newsletter:
News
Summary: The Reserve Bank of India announced the issuance of new Rs. 500 banknotes in the Mahatma Gandhi (New) Series, featuring the inset letter 'E' and the signature of Governor Dr. Urjit R. Patel. These notes, printed in 2016, include the Swachh Bharat logo on the reverse. They differ from previous series in color, size, theme, and security features. The notes are stone grey, measure 66mm x 150mm, and feature the Red Fort with the Indian flag on the reverse. Enhanced features like intaglio printing and identification marks assist visually impaired individuals in recognizing the denomination.
Summary: The Indian government has withdrawn the legal tender status of Rs. 500 and Rs. 1000 banknotes to combat fake currency and black money. These notes can no longer be used for transactions but can be exchanged at banks and post offices. Individuals can exchange up to Rs. 4000 in cash; amounts above this are credited to bank accounts. The exchange facility is available until December 30, 2016. People without bank accounts can open one to facilitate exchanges. Special provisions allow for use in emergencies and for foreign tourists to exchange notes within 72 hours. Further details are available from the Reserve Bank of India and government websites.
Summary: The Government of India announced the withdrawal of Rs. 500 and Rs. 1,000 banknotes as legal tender, effective November 8, 2016, to combat counterfeit currency, black money, and terrorism financing. From November 10, 2016, individuals and entities can deposit these notes into bank accounts or exchange up to Rs. 4,000 for cash with valid ID. Cash withdrawals are limited to Rs. 10,000 per day and Rs. 20,000 per week until November 24, 2016, with ATM withdrawals initially capped at Rs. 2,000 per day. Unexchanged notes can be deposited at specified Reserve Bank offices until a later date.
Summary: On November 8, 2016, the Government of India announced the demonetization of Rs. 500 and Rs. 1000 banknotes, effective November 9, 2016. These notes ceased to be legal tender, and a new series featuring Mahatma Gandhi was introduced. Banks were instructed to facilitate the exchange of the old notes until December 30, 2016. On November 9, 2016, banks were closed to the public for preparations. ATMs were reconfigured to dispense smaller denominations. Limits were set on cash withdrawals and exchanges, with specific guidelines for bank operations and reporting to the Reserve Bank of India.
Summary: The Reserve Bank of India announced the withdrawal of Rs. 500 and Rs. 1000 banknotes, effective immediately. There is no limit on the amount that can be deposited into bank accounts. This move aims to curb black money and counterfeit currency. The notification was released in both Hindi and English on November 9, 2016, as part of a broader economic reform.
Summary: The Government of India announced the withdrawal of Rs. 500 and Rs. 1,000 banknotes as legal tender, effective November 8, 2016, to combat counterfeiting, black money, and terrorism funding. From November 10, 2016, individuals and entities could deposit these notes in banks for credit to their accounts or exchange up to Rs. 4,000 in cash with valid ID. Bank account cash withdrawals were limited to Rs. 10,000 per week, and ATMs were temporarily shut on November 9 for recalibration, with a withdrawal limit of Rs. 2,000 per day upon reopening. Further details were available on the RBI and government websites.
Highlights / Catch Notes
Indian Laws
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Guidelines for Banks on Rs. 500 and Rs. 1000 Note Demonetization: Compliance, Customer Communication, and Record Management.
News : Instructions to Banks - Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes
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FAQs on Withdrawal of Rs. 500 and Rs. 1000 Notes: Exchange, Deadlines, and Impact on Public and Businesses.
News : FAQs on Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/-
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Government Bans Rs. 500 and Rs. 1,000 Notes to Fight Corruption and Black Money, Effective Midnight.
News : Historic announcements on ending corruption and black money by PM; Five hundred and one thousand rupee notes will no longer be legal tender from midnight tonight
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Reserve Bank of India Announces Withdrawal of Rs. 500 and Rs. 1000 Notes; No Deposit Limit in Banks.
News : RBI Notification on withdrawal of ₹ 500 and ₹ 1000 Notes - Conditions and safeguard - No limit on deposit into Bank (Hindi and English Both)
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Commerce Minister Highlights ECGC's Role in Boosting Export Flows and Supporting Indian Exporters Amid Economic Challenges.
News : Commerce and Industry Minister says ECGC’s role is very crucial in the trying times in sustaining the flow of exports
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