The Income-tax (Amendment) Ordinance, 1981

1(1961. ~o 19] No 19] ~ EXTRAORDINARY ~11~1 PART II-Section 1 snfor ..m: ~ sr~f'lffi'I' PUBLISHED BY AUTHORITY ;:rf f~~{,I''), 'l(rf;:r<-l'T"{1 ~~f 11, 1981/~Hl'T~ 20, 1903 NEW DELHI, SATURDAY, JULY 11, 1981/ASADHA !lo, 1903 '~~if~··~ ~ .ft ri f ~ 1'cli "11! ~ ~ ~ ~ * nJf ~-~ I Separate paging is given to. this Part in order that it may be filed as a separate compilation MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS \ , (Legislati-vc Department) 1New Delhi, the 11th July, 1981/ Asadha 20, 1903 (Saka) T!_IE INCOME-TAX .(AMENDMENT) ORDINANCE, 1981 No. 8 OF 1981 ·Promulgated by the President in the Thirty-second ·year of the Republic of India. An Ordinance further to amend the Income-ta~ Act, 1961. WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action; Now, THEREFORE, in exercis~ of the powers conferred by clause (1) of artkle 123 of the Constitution, the President is pleased to promulgate • the following Ordinance: - • 1. (1) This Ordinance may be called the Income-tax (Amendment) Ordinance, 1981. r . (2) It shall come into force at once. I 2. In the Income-tax Act, 1961 (hereinafter referred to as the principal ' Act), after Chapter XXA, the following Chapter shall be inserted, namel,y-:- Short title and com­ mence­ ment. Inser- tion -of new Chap­ ter XXB . • Mode of repay­ ment of cer­ tain de­ posits. Inser- tion of new sec­ tion 276E. Failure to com­ ply with the provi­ sions of section 269T. Amend­ ment of section 278A. Amend­ ment of section 279. 'CHAPTER XXB Requirement as to mode of repayment in certain cases t.o counteract evasion of tax 269T. No company (including a banking company), co-operative society or firm shall re:pay to any person any deposit otherwise than by an account payee cheque or account payee bank draft , where the amount of such deposit, or where the amount of such deposit is; to be repaid together with any interest, the aggregate of the amount of such deposit and such interest, is ten thousand rupees or more: · Provided that where the repayment is. by a banking company or co-operative bank, such repayment may also be made. by crediting the amount of such deposit to the account (if any) with. such com­ pany or bank of the person to whom such deposit has to be repaid. Explanation.-F,or the purposes of this sect~on,- (i) "banking company" shall have the meaning assigned to it in clause (a) of the ExpLana;tion to sub-section (8) of section 40A;- (ii) ''deposit'' means any deposit pf money which is repay­ able after notice or repayable after a period.'. • 3. After section 276D of the princi-pal Act, the following section shall be , inserted, namely:- "276E. If a person, withbut re?-SOnable cause or excuse, repays any deposit referred to in section 269T otherwise than in accordance- ­ with the pr~visions of that section, he shall be punishable with im:. prisonment for a term which may extend to two years and shall also . be! liable to fine equal to the amount of such deposit.". 4, In section 278A of the principal Act, after the words, figures - and< letters "or section 276CC", the words, figures and letter "or secti,on 276E'' shall be inserted. 5, In section 279 of the principal Act, in sub-section (I), after the word,· figures ahd letter "section 276D,", the word, figures and letter "section! , 276E," shall be inserted. N. SANJIVA REDDY, President. , R. V. S: PERI SASTRI, Secy . . tb the Govt. of India' . .