18 banks miss BCTT filings

As many as 18 public sector banks have defaulted in filing their monthly statements of Banking Cash Transaction Tax (BCTT) collections till January, 2006-07.

Under the BCTT scheme, banks are required to furnish branch-wise details of BCTT collected every month to Income Tax department.

Kolkata-based Uco Bank and State Bank of Travancore topped the list by not furnishing the BCTT statement in time for six months, April-September 2006. The delays ranged from 2-7 months.

The other major banks which have erred in filing BCTT returns are Bank of India, Corporation Bank, Indian Bank, IDBI Bank, Allahabad Bank, Vijaya Bank, Bank of Maharashtra, Central Bank of India, Dena Bank, Punjab & Sind Bank and Syndicate Bank.

State Bank of India's associate banks, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore and State Bank of Patiala have filed returns after a gap of 60 days after the due date of a particular month.

Many regional rural banks have also defaulted in filing the monthly BCTT statements. If the banks fail to file returns in time, they have to pay a penalty for every day of default.

Under the BCTT Act, a tax at the rate of 0.1 per cent is levied on cash withdrawals above Rs 25,000 per day for an individual and Hindu undivided families, and Rs one lakh per day for other entities.

In the Finance Bill 2007, the exemption limit for individuals and Hindu undivided families has been raised from Rs 25,000 to Rs 50,000. BCTT, which was introduced in 2005 to track black money, has fetched the government Rs 384 crore in 2005-06 and Rs 505 crore till March 24, 2006-07.

The finance ministry is understood to have expressed its dissatisfaction with these banks at non-compliance.