Skip to content

CMA Final · Direct Tax Laws and International Taxation · Black Money Act, 2015

A notice under section 32(4) of the Black Money Act is served on a bank holding money for the assessee. Which statement is correct about producing documents before the bank pays?

No document needs to be produced. Under section 32(7), where a notice is issued to a bank, post office, insurer or other person, it is not necessary to produce any pass book, deposit receipt or policy for any entry or endorsement before payment, despite any contrary rule or practice.

  1. AThe bank may insist on the deposit receipt being produced before payment
  2. BThe assessee must first endorse the pass book
  3. CThe bank must first obtain a court order
  4. DIt is not necessary for any pass book, deposit receipt, policy or other document to be produced for any entry or endorsement before paymentCorrect

Explanation

Section 32(7) provides that no pass book, deposit receipt, policy or other document need be produced for any entry, endorsement or the like before payment, notwithstanding any rule, practice or requirement to the contrary. This applies where the notice is issued to a post office, banking company, insurer or other person. So insisting on documents is not permitted.

Did you get it right without looking?

One question tells you little. A timed set on Black Money Act, 2015 shows your real accuracy, how long you take and where you lose marks.

Practise Black Money Act, 2015Free diagnostic mock

More Black Money Act, 2015 questions