Income Tax imposed a fine of Rs 564 crore on the government bank
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income tax: The Income Tax Department is adopting a strict stance regarding tax evasion. In this matter, action has been taken against common people and big businessmen. But now the Income Tax Department is also taking government institutions on its radar. It is being told that the Income Tax Department has informed the Bank of India (B.O.I.) has imposed a fine of Rs 564.44 crore. Public Sector Banks (PSB) said that it will approach the Income Tax Commissioner, National Faceless Appeal Center (NFAC) is in the process of filing an appeal before. The bank says that it has grounds to get relief from the penalty. However, the effect of this notice was not visible on the bank’s stock yesterday. By the time the market closed, the bank’s shares closed with a rise of more than 3 percent.
Why action was taken against Bank of India
Bank of India said in a communication to the stock exchange that it has received an order from the Income Tax Department, Assessment Unit under Section 270A of the Income Tax Act, 1961 related to the assessment year 2018-19, in which an amount of Rs 564.44 crore has been imposed on violations of various rules. Fine has been imposed. It said that the bank believes that it has sufficient factual and legal basis to properly justify its position in this matter. Therefore, it is expected that the overall fine demand will be reduced. In such a situation, there will be no impact on the financial, operational or other activities of the bank.
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What will be the impact on account holders?
The penalty of the Income Tax Department will not directly affect the account holders under any circumstances. If the bank goes to the National Faceless Appeal Center against the order of the Income Tax Commissioner, two things can happen there. A bank will get relief in fine. Second, there will be no relief. In any case, if the bank has to pay the fine, it will pay it from itself. The burden of this will not fall on the customers. In such a situation, the customers’ money is completely safe in the bank and no extra charges will have to be paid.
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