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

Under the Black Money Act, 2015, the Assessing Officer issues a notice to a bank (a debtor of the assessee) to pay a sum towards the assessee's tax arrear. Which statement is correct about the notice?

The bank need not pay if it objects by a statement on oath that the sum demanded is not due to the assessee or that it holds no money for or on account of the assessee. Production of documents is not required, and joint accounts and amendment are separately dealt with.

  1. AThe bank can pay only after the pass book or deposit receipt is produced for endorsement
  2. BThe bank is not required to pay the arrear if it objects by a statement on oath that the sum is not due to the assessee or that it holds no money for the assesseeCorrect
  3. CThe bank may ignore the notice if the account is held jointly with another person
  4. DThe notice cannot be amended or revoked once issued

Explanation

Section 32(9) lets the noticee object by a statement on oath that the sum is not due or that no money is held for the assessee. Section 32(7) says production of a pass book or receipt is not necessary. Section 32(6) and 32(17) deal with joint accounts but do not allow the notice to be ignored. Section 32(11) allows amendment or revocation.

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