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Supreme Court rejects Sanjay Dutt’s review plea

The apex court had on 21st March upheld his conviction in the 1993 Mumbai serial blasts case which it said was organised by underworld don Dawood Ibrahim and others with the involvement of Pakistan’s ISI

 
Bollywood actor Sanjay Dutt’s hope of getting relief in the 1993 Mumbai blasts case was dashed with the Supreme Court dismissing his plea seeking review of its judgement on his conviction and five-year jail term.
 
A bench of justices P Sathasivam and BS Chauhan, which had delivered its verdict on 21st March, refused to review its verdict on Dutt’s plea today.
 
Dutt, who was granted four weeks more time to surrender to undergo remaining three-and-a-half-year jail term, will have to surrender before jail authorities on 16th May.
 
With the dismissal of review plea, 53-year-old Dutt has got only one option of getting relief from the court by filing a curative petition.
 
The apex court had on 21st March upheld his conviction in the 1993 Mumbai serial blasts case which it said was organised by underworld don Dawood Ibrahim and others with the involvement of Pakistan’s ISI.
 
However, the apex court had reduced to five years the six-year jail term awarded to Dutt by a designated TADA court in 2006 and ruled out his release on probation, saying the ‘nature’ of his offence was ‘serious’.
 
Dutt was convicted by the TADA court for illegal possession a 9 mm pistol and an AK-56 rifle which were part of a consignment of weapons and explosives brought to India for coordinated serial blasts that killed 257 people and injured over 700 in 1993.
 
The bench also dismissed similar pleas filed by other six convicts in the case.
 
Other six convicts, who filed review petitions are Yusuf Mohsin Nulwalla, Khalil Ahmed Sayed Ali Nazir, Mohamed Dawood Yusuf Khan, Shaikh Asif Yusuf, Muzammil Umar Kadri and Mohd Ahmed Shaikh.

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COMMENTS

Vaibhav Dhoka

4 years ago

Such review petition increases work load on overburdened judiciary and take toll on common man who cannot bear heavy and high cost of judicial adjudication.

System glitch deducts 40% amount as TDS from SBI depositors’ account!

State Bank of India has admitted that a human error in setting parameter in its system led to deduction of income tax or TDS @40% for FY13 from accounts of its special term deposit holders. SBI is in the process rectifying the issue, but not all depositors will see their entries reversed as yet. How is a common saver supposed to know such deductions from his ‘trusted’ bank and whether there are any costs attached?

 

State Bank of India (SBI), the country’s largest lender, shocked a number of its customers by lopping off income tax at the rate of 40% as tax deducted at source (TDS) for FY2012-13. When several account holders, of its special term deposit scheme, (these are deposits created automatically by system based on the threshold amount set by depositors in their savings bank-SB plus accounts-multi option deposit or MOD) complained, the lender restored the amount. However, there are still 6,118 account holders who, according to SBI, will have to bear “notional loss of interest”.


According to SBI, the impact of this erroneous parameter change (esentially a human error in setting parameter) was limited to only one term deposit product, special term deposits-multi option deposit (STDR-MOD), out of its around 2,358 such products.


In an email reply, a deputy general manager at SBI’s IT-core banking (business operations and support) division, said,  “We observed on 2nd April that for a particular type of special term deposits excess amounts have been deducted as Income Tax. As we had not made any software changes, it took us some time to locate the source of error. Due to an inadvertent parameter change for the particular product in the system, TDS was deducted at a higher rate. On detection of the error, immediate steps were taken to systemically restore the excess TDS in all the concerned accounts, except the accounts, where it was technically not feasible to restore credit into the original account. In case of all such accounts, credit of amount involved has been afforded to the linked SB accounts of the customer concerned. The entire rectification exercise was completed by 12 April 2013”.


While SBI admitted to have credited back the excess TDS into customer’s savings accounts, it has neither restored the same in the fixed deposit (FD) accounts affected nor compensated such account holders for the loss of interest.


"As a step to minimise the inconvenience and interest loss to the affected customers, we are in the process of issuing similar STDR-MOD accounts for each of these accounts, with the excess TDS amount. This process is expected to be completed by Saturday," SBI said in an email.


Due to the wrong deduction of TDS, several account holders of the state-run lender received lower interest rate on their deposits. Some even had to pay penalty for pre-mature withdrawals (especially FDs that were less than seven days old). The wrongly debited money was credited into their savings account several days later. Therefore, the customers  
(i) got lower rate of interest on fixed deposits,
(ii) paid penalty for pre-mature withdrawal,
(iii) no interest was paid between amount debited from fixed deposits and amount credited in savings account, and
(iv) amount credited in savings bank account earns a lower rate of interest, that too from the day such amount was reversed.


Apparently, not all depositors will find their entries reversed or rectified due to technical reasons. When asked if unfortunate depositors will be made good on the losses, SBI said, “Our branches are being suitably instructed to make good these notional losses by manual interest payment/adjustment, which will be ensured with follow up from our end.”


Furthermore, he said, “There has been no instance where the interest has been paid on a fixed deposit at a lower rate. Since the incident was not in the nature of premature withdrawal, no penalty was levied by the system.”


Whether other banks have audited their IT systems to ensure that this, or for that matter any grave error, does not happen, is not known. SBI admits that that it will take time to rectify the error because it is not familiar with it. The deputy general manager said, “The process being carried out is not a laid down process, hence it is taking some time.”


This is not the first time that the TDS issue has come to spotlight. Many a times, banks are found failing to file tax deducted from account holders leaving individuals and companies with severe penalties. They harass depositors over TDS certificates, especially senior depositors, who have to run from pillar to post to get several TDS certificates if they have multiple accounts.

Moneylife Foundation had earlier sent a memorandum on TDS to the Reserve Bank of India (RBI) and finance ministry, to do away with the painstaking system of obtaining many forms, amongst other things including shifting of responsibilities to banks to ensure proper TDS documentation is obtained.

 

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COMMENTS

Dekho ji.com

4 years ago

TDS is fraught with too many implementation issues and complaints everywhere with all banks. Customers are the sufferers as always. Best is to let people deposit their tax afterwards rather than managing all this unnecessary complexity around TDS collection and payments. Get rid of TDS. Let people pay tax afterwards.

Dayananda Kamath k

4 years ago

may be parting shot by chairman of sbi to help govt reduce cad

Anil Kumar

4 years ago

I believe the govt. has not done enough to make tax deducting entities to fulfil their responsibilities in diligent manner.

The worst part of the situation is that IT dept. does not take an action against the erring entities (even when the offence is as serious as deducting the TDS but not depositing with govt.). The truth is that easier course for them too is to harass the individual taxpayer.

S BHASKARA NARAYANA

4 years ago

Form 15G declaration means he is not coming into the Tax bracket of Rs.2 lacs per annum (present prevailing slab) after summing up all his salary/pension, present accrued interest on Deposits, income on Bonds, Rents on Housing property etc., though he is not attracted with payment of tax, after taking into consideration of Rs.1 lac savings under Sec.80 C.

Thus, most of the depositors can not furnish Form 15G. Like wise, most of the senior citizens, for whom the limit is Rs.2.5 lacs instead of Rs.2 lacs, who under the age of 80 years.

LALATENDU SWAIN

4 years ago

Will Moneylife please represent such cases to he Union Finance Minister to end this nuisance?!
FM must scrap this TDS on Bank Fixed Deposits, because Banks are compelled to deduct TDS on Interest accrued every Quarter, even though such interest income has not been paid to the depositor!
As a result, GoI gets its TDS ahead of time, whereas the Depositor loses the benefit of interest on the TDS amount for the remaining life of the FD.
Why haven't depositors raised this issue of being cheated by this absurd interpretation of TDS by IT Dept of GoI?!

arun adalja

4 years ago

this is nothing but negligience on the part of bank and service providers.every one must be compensated for failure of system or bank.for senior citizen form business must be scrapped.

Naresh Nayak

4 years ago

This TDS issue with the fixed deposits has been happening since the past several years in SBI. Each year I check my SBI TDS calculation and inadvertently it is an excess deduction. Then I send them a letter and they reverse the excess TDS deduction. So only those vigilants who notice this error received their just refunds. The other ignorants lost their TDS to the Government and possible scrutiny of the income tax since the TDS deduction did not match with the gross deposit amount thus vastly "concealing" fixed deposit amounts on the income tax returns. The whole blame should be on the Chartered Accountant of the SBI branches who file the TDS with the Government without bothering to check. These tax consultants hired by SBI as external agents are merely there to collect their professional fees without doing their job properly.

On the other hand, the TDS deduction system also has a glitch. It cannot ascertain the amount of interest accrued for a financial year for deposits that spans across financial years. In the case, it incorrectly calculates a higher amount of gross interest accrued.

I raised a stink with the SBI regarding this glitch but to no avail. Then I called up the Chartered Accountant after obtaining the number from the accounts executive in SBI and threatened them with consequences if they did not pass a reversal entry in the 26AC Tax deduction certificate at NSDL.

This time the SBI story has broken out because enough people have now realised the error and SBI is not bothered to correct the TDS software glitch.

http://nareshnayak.wordpress.com

REPLY

Vinay Joshi

In Reply to Naresh Nayak 4 years ago

In which manner sending a letter to SBI-TDS is corrected?

Regards,

S BHASKARA NARAYANA

In Reply to Vinay Joshi 4 years ago

Form 15G declaration means he is not coming into the Tax bracket of Rs.2 lacs per annum (present prevailing slab) after summing up all his salary/pension, present accrued interest on Deposits, income on Bonds, Rents on Housing property etc., though he is not attracted with payment of tax, after taking into consideration of Rs.1 lac savings under Sec.80 C.

Thus, most of the depositors can not furnish Form 15G. Like wise, most of the senior citizens, for whom the limit is Rs.2.5 lacs instead of Rs.2 lacs, who under the age of 80 years. For those who are above 80 years, the limit is Rs.5 lacs.

One has to submit in duplicate for the AY 2014-15, now in advance for the current Financial year 2013-14, to be signed by the First name holder of the bond, if it is joint names. PAN is cumpulsory to submit the form, lest 20% on accrual interest is being deducted as TDS. If accrual inerest does not exceed rs.10,000 for FY, need not submit form, no TDS will be done. ( This ceiling is for each branch). However, the assessee has the liability to sum up all bank branches to arrive at basic exemption limit, and thus to whether to submit Form 15G/H

nagesh kini

4 years ago

It is not 'system glitch' but sheer human apathy.
I had to get a Bank Of Baroda branch to rectify as much as 100% TDS from their 86+ customer of over 50 years who had all his savings parked in FDs in the same branch. At times FD interest would be credited 100%, at times none - excuse they had 'forgotten' to deduct TDS in the earlier credit!Their Officers and Manager were 'too busy' to meet the old man to clarify.
I had to accompany him and his daughter to the branch to tell them that they hold Form for which the client has a stamped acknowledgement. The refunded the TDS and issued the TDS certificate for the Tax deducted wrongly in the previous years belatedly.
I got them to promise no TDS deduction in future where the forms are submitted and TDS certificates will be issued to enable Tax returns to claim refund.

REPLY

Vinay Joshi

In Reply to nagesh kini 4 years ago

Mr.Nagesh Anna,

Under which provisions of the IT ACT [income tax] the deductive amt can be refunded by BoB? Cr. to the a/c held with the branch. IMPORTANT TO EXPLAIN!

No 'INTEREST CREDITED' AS AN ICAI MEMBER, FCA, HAVING AUDITED BANKS, you're telling this as 'fairy tale'.

IF SO AS A SO CALLED ACTIVIST WHAT PREVENTED YOU FROM BLASTING THIS ISSUE & HAULING UP ICAI AUDIT MEMBERS? THE BANK ITSELF!? IT'S STATUTORY AUDITORS!?

Regards,

PATTABHI

4 years ago

Yes, TDS creates many problems all over. In STDRs, some times TDS gets deducted despite submission of Forms 15G/H and when it is brought to the notice by vigilant Depositors (only those get and hold acknowledge ment of submission of 15G/H on copies thereof and who monitor the transactions in their deposit accounts regularly on interest due dates through Internet Banking discover this in time)the Branches refund the TDS deducted to the SB ac, In the process the STDR yield gets reduced.Technically, it is possible to restore STDRs to its original status in such cases through value-dating process, but the Bank has not thought it necessary. Also, Bank should be able to alert the depositor by EMail / SMS of such deductions. Again a depositor may have, at the beginning of the year, deposits whose projected interest exceeds the 15G/H threshold and hence 15 G/H is not accepted by the system; but when part of his deposits are withdrawn during the year for expenses or other investments and the actual interest projected comes within the threshold limit, the system be able to accept the original 15G/H submitted.

REPLY

Vinay Joshi

In Reply to PATTABHI 4 years ago

Please can you explain the provisions in detail of TDS by banks? Interest a/c be it 15G/H.

Regards

PRABHAT

In Reply to PATTABHI 4 years ago

ACTUALLY ,15G/H HAS TO BE SUBMITTED EVERY YR ON 1st APRIL , FOR EXITING DEPOSITS , APART FROM SUBMISSION OF SAME ON AT THE TIME OF RENEWAL OR MAKING FRESH DEPOSIT
BUT ABOVE ALL ,SUBMISSION OF 15G/H HAS NO MEANING UNLESS IT IS FEEDED IN COMPUTER .

TO OVER COME ANY OMMISSION/COMMISSION ,IT IS SUGGESTED THAT THERE MUST BE AN INSTANT SMS/E MAIL TO CUSTOMER , TO APPROACH BANK TO MAKE NECESSARY CRRECTION , AS THERE IS FEW DAYS GAP BETWEEN TDS DEDUCTION AND DEPOSIT OF SAME .

Vinay Joshi

In Reply to PRABHAT 4 years ago

Under which provisions of IT Act or Banking regulation ON renewal 15G/H submission is must. Pl explain.

Regards,

Anbarasu

4 years ago

SBI Branch at Dharmapuri, Tamil Nadu charges 100 per day for the customers who failed to maintain minimum account balance. I have seen few customers who were charged in thousands in this way.

REPLY

S BHASKARA NARAYANA

In Reply to Anbarasu 4 years ago

you are mistaken. There are no minimum balance penalties since 01/04/2012 for Savings Bank account holders (not to Current a/c holders).u can maintain even zero balance.

PRABHAT

In Reply to Anbarasu 4 years ago

SUCH CHARGES ARE ON MONTHLY BASIS TILL MINIMUM BAL IS MAINTAINED AND NOT ON DAILY BASIS .
CONTACT BR/BANK FOR REFUND .

Vaibhav Dhoka

4 years ago

Usually common public is never compensated for NO FAULT HIS.But penalty is levied and the authorities are reluctant to address his grievance,and all this goes in name of computerization.A common man is always at loss.

India Post needs to reorganize its services first; banking can happen later!

India Post needs to overhaul its services and become more efficient than private couriers. When it reaches such a stage, private banks will then approach the government to seek permission to open branches attached to India Post offices

 
The deadline for submitting applications to the Reserve Bank of India (RBI) for new a commercial banking license is fast approaching and the names of prospective applicants are not yet known.
 
In the recent past, media reports and articles indicate that large business and corporate bodies have shown definite interest, some of which are already associated with financing companies, but actual applicants’ names may be announced by RBI after the closing date.  It may be recalled that the Parliamentary Standing Committee has not favoured issuance of licenses to new entities, particularly those associated with big business houses, as it feels that this may lead to corrupt practices.  This aspect was covered by Moneylife recently (http://www.moneylife.in/article/new-banking-licences-clear-the-dead-wood-first/29133.html).
 
Amongst the contenders, India Post has shown keen interest but its enthusiasm has met with a negative response from the ministry of finance, which has pointed  out that India Post has no actual credit handling experience that is so relevant to operate a successful bank.
 
One may surmise the reason for the ministry of finance’s reaction in this fashion. India Post has suffered a loss of Rs6,346 crore in 2011-12 and it may have increased further for the year ending March 2013.  Details will be probably known by September this year.
 
Due credit must be given to India Post, the world's largest postal service, covering the whole country reasonably well at throw away prices!  However, the major problem actually refers to its inefficient, non-imaginative and inefficient administration which has hardly any motivation to perform well.
 
In effect, it is not profit-oriented.  The postal employee, who gets the benefit of being a government servant, has practically trouble free life long service with increments and periodic promotions.  S/he has no need to do customer service gimmicks and is not answerable for their poor service in terms of ‘lost’ or ‘delayed’ mail or service.
 
In fact, simply because of this inefficient outlook and lack of incentives to perform, competition from private courier services has grown into very large enterprises.
Though introduction of “speed post” and now sort of courier service to specific destinations at low prices have been found useful, customers still tend to depend upon their regular private couriers, almost at double the cost.  Speed and confirmed delivery are essence of contracts for business that private courier companies can and do guarantee, which India Post is unable to match in practice.
 
Most post offices are sitting on government premium property sites.  The postal rates are perhaps the lowest in the world and at this income they will not be able to reach profit making stage, unless these are revised upwards.
 
Philately, for example, is big business, and stamp collecting, including issue of First Day Covers (FDCs)—a popular growing hobby which starts at childhood (for most)—helps to broaden general knowledge and becomes a money spinner, in which one lands up on an antique or misprint of a stamp.  But visit any post office to buy a commemorative stamp, you will be directed to go and get them in the GPO! Why can't the post office, however small it may be, sell these stamps and FDCs?
 
Likewise, India Post also offers foreign exchange but try to buy them without a hassle!
 
Under the circumstances, India Post needs to overhaul its services, revise postal rates upwards to meet the growing cost; introduce adequate rewards and incentives to its large employee force and become as efficient as a private courier service, if not better them in some ways.
 
When it reaches such a stage, private banks will then approach the government to seek permission to open branches attached to India Post offices, as such a move may serve the ultimate purpose of making banking easy to the rural folks!
 
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)
 

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COMMENTS

arun adalja

4 years ago

do we require more banks?we have enough banks and if you want more branches can open at any place. more banks more scam.

Jingo

4 years ago

Well.. R u sure they would be able to improve their services.. Isn't it the same problem with entities which are run by ministries.. Look at Air India, Indian Railways, India Post, BSNL, MTNL... Its the same bloodbath everywhere.. And it is for the simple fact that taxpayer money can be used as an unlimited source.. Of course most of the expenditure is towards salaries which are for inefficient, slothful people.. Who have no motivation as you say to improve customer service.. But a significant part of the money is also to be swindled away using corrupt means.. Look at the bansal - singla controversy.. Dd anyone think that for one position on the railway board someone would be ready to pay 10 crores!! Just imagine how much money he would be recovering from that post.. And do you think the likes of bansal or singla or manjunath would not claim any more money later... The would have all been rolling in croresand crores of cash..

Noone is talking about the process of recruitment.. Everyone knows bansal made a mistake,, and they want to bury him as soon as possible and ge someone else to do the AUCTION... Yes.. Thats what it is.. Auction of jobs.. To corrupt, by the corrupt, for the corrupt.. Hail the great Indian democracy..

arun adalja

4 years ago

first do your service efficiently and do not run for so many things.couriers are doing best services and so post office lost the business.in foreign countries postal dept is doing excellent business and with efficient and speedy way.even tvs and glass bottles are handled by postal dept with gurentee of no damage.

nagesh kini

4 years ago

With the Internet letter writing is a gone art. Phones have rendered telegraphs out of fashion. Couriers and DHL rendered postal services redundant. Today's kids don't know what stamps or first day covers are!
The India Post at present is sitting on very valuable real estate in the heart of the city and in remote nooks and corners of India. It has an army of employees.
P&T has been in the business of deposit and to an extent postal insurance for long. Thankfully scam-free so far.
India Post should be allowed banking licence limited to deposits and possibly loans there against. No lending whatsoever.
Any way they are in it at present and they do have an outreach, infrastructure and experienced manpower.

anantha ramdas

4 years ago

Thank you Mr Warrier and Mr Dhoka for your observations. As you have experienced, the postal service needs professional assistance and help in reorganizing itself into an important element of our society.

Regretably, they do not have the knowledge, trained manpower (or womanpower) to convert a section of their operation to function as a bank, though, they do take or delivery moneyorders and the like.

Sadly, we must accept and admit that private enterprise is more dynamic to meet the growing needs than any government setup.

In the long run, 10/15 years from now, I anticipate that except for printing stamps, rest of the operations will be done by private bodies, who will provide an efficient system at less cost than it is today.

REPLY

M G WARRIER

In Reply to anantha ramdas 4 years ago

I am tempted to agree with the following observation:
“In the long run, 10/15 years from now, I anticipate that except for printing stamps, rest of the operations will be done by private bodies, who will provide an efficient system at less cost than it is today.”
But, for a different reason. The mass massacre of public sector organisations that is going on today, will lead to this position.

M G WARRIER

4 years ago

When the idea of new bank licenses was first floated in 2010, I had commented in a finance newspaper that, financial sector reforms should get attention simultaneously, or after quickly issuing VIP licenses (these words were not used). Now an impression is being given to aspirants including India Posts that it is a ‘now or never’ stance from the authorities on the issue of new banks. Like any other business, starting banks also should be an ongoing process depending on need and policy considerations for the smooth functioning of the financial system. GOI and RBI should view the issue seriously and give a clear idea about the ‘banking policy’ including structural issues and expectations from existing and new banks. India Posts has a history of ‘customer satisfaction’ within the constraints and a hurried conversion of a portion of the business it is doing into ‘commercial bank’ before doing necessary groundwork will be suicidal.

Vaibhav Dhoka

4 years ago

Postal banking is in mess.I had a postal savings account in Pune which was closed .In June 2011 balance read as 776 two years Sb account interest was to be credited.When I went to close account on 4th April I was shocked to note my balance reduced to Rs 557.On account closure my passbooks(3) were taken back and I was paid Rs 579 after 15 days.I am yet to hear anything from Post Master General in this matter.

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