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TMI BlogThe Income-tax (Second Amendment) Act, 1981 -Explanatory notes on the provisions ofX X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of the Income-tax (second Amendment) Act, 1981. Background 2.1 The proliferation of black money poses a serious threat to the national economy and it was considered necessary to take effective steps to contain and counter this major economic evil. The Government have, in recent past, taken several legislative and administrative measures to unearth black money. The Income-tax (Second Amendment) Act, 1981 (hereinafter referred to as the Amending Act), representing another step in the same direction. 2.2 It came to Government's notice that a substantial amount of black money was deposited by tax evaders with banks, companies, co-operative society and partnership firms either in their own names or in benami names. The Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the deposit, if the amount of the deposit together with interest, if any, payable thereon is or exceeds Rs. 10,000. The provisions of this sub-section also apply in case such person with the branch of the banking company or the co-operative bank or any other company or co-operative society or the firm either in his own name or jointly with any other person on the date of such repayment together with interest, if any, payable on such deposits is Rs. 10,000 or more. The provisions of sub-section (1) apply only where the amount of each deposit (together with interest thereon), is Rs. 10,000 or more. In other words these provisions do not apply in cases where the aggregate amount of the deposits made by the depositor (either in his own name o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assent of the President. 3.5 The Explanation to section 269T defines certain expressions used in the section. Clause (i) of the Explanation defines "banking company" to mean to have the same meaning as assigned to it in clause (a) of the Explanation to section 40A(8). Further, "deposit" as defined in clause (ii) of the Explanation, means any deposit or money which is repayable after notice or repayable after a period. [Section 2 of the Amending Act ] Mode of repayment of the Special Bearer Bonds, 1991 - Section 269TT 4.1 Section 3 of the Amending Act has inserted a new section 269TT in the income-tax relating to mode of repayment of the Special Bearer Bonds, 1991. 4.2 New section 269TT provides that notwithstanding anything cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment to the provisions relating to punishment for second and subsequent offences - Section 278A 6.1 Section 5 of the Amending Act has amended section 278A of the Income-tax Act relating to the punishment for second and subsequent offences by including a reference to section 276E therein. In other words, if any person convicted of an offence under section 276E is again convicted for the same offence, he will be punished for the second and every subsequent offence with rigorous imprisonment for a term which shall not be less than 6 months but which may extend to 7 years and with fine. [Section 5 of the Amending Act] Prosecution to be at the instance of Commissioner - Section 279 7.1 Section 6 of the Amending Act has amended section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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