Can bank transfer fixed deposits and savings amount in account of minor child u/g of his father who is having income tax demand u/s 226(3) of it Act. If it is done can a criminal police complaint be filled against the bank manager and bank.
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1) Yes, as per the Income tax section 226(3) (ii)
"A notice under this sub- section may be issued to any person who holds or may subsequently hold any money for or on account of the assessee jointly with any other person and for the purposes of this sub- section, the shares of the joint holders in such account shall be presumed, until the contrary is proved, to be equal."
2) If the account in the bank is joint account with the minor than bank can transfer amount on Income Tax notice.
Hi,
The criminal case can be initiated against the bank or the manager for illegally transferring the amount.
under section 226 (3), the income tax authorities have the power to direct banks to remit money which is due or may become due to the banks depositor or borrower. When such notice served to the banks in respect of an account, the banks may take the following measures or recourse:-
In case of a deposit account, including fixed deposit, standing in the name of the depositor having credit balance, the bank is obligated to remit the amount as is sufficient to meet the demand stipulated in the said notice. On remission of the sum, a receipt for the sum paid shall be issued and the bank shall be fully discharged from it's liability to the extent of payment.
In case there is no money in the said deposit account, the bank may submit a written objection stating that the sum demanded in the notice is not due to the depositor or the bank does not hold any money for or on account of the depositor. If banks takes such objection in the circumstances mention above, nothing in this section 226(3) can compel the bank to pay such sum mentioned in the notice.
Dear client,
No criminal case but refund at the instance of child after becoming major.
Court order is must to use child assets.
Section 226(3) of the Income-tax Act, 1961, empowers the Assessing Officer (AO) or Tax Recovery Officer to direct any person from whom money is due to the tax-payer who is in default, to pay such amount directly to the tax department. For doing so, a notice in writing has to be issued to the person from whom recovery is to be made of the dues of an assessee.
2) When such notice served to the banks in respect of an account, the banks may take the following measures or recourse:-
•In case of a deposit account, including fixed deposit, standing in the name of the depositor having credit balance, the bank is obligated to remit the amount as is sufficient to meet the demand stipulated in the said notice. On remission of the sum, a receipt for the sum paid shall be issued and the bank shall be fully discharged from it's liability to the extent of payment.
3) if bank transfers fixed deposits in account of minor child inspite of being served with notice income tax department can file police complaint against the bank manager and bank
See if the minor is entitled for the amount then manager can transfer same even if there is a demand notice no action can be taken against the manager.
yes complaint can be filed if it violates the income tax law or IPC in any manner.
1. No, the minor child's money can not be transferred for the payment of I.Tax of his/her father/guardian.
2.Lodge a police complaint against the Bank Manager (no criminal complaint can be filed against a company/organisation).
3. If police refuses to register FIR, file a Writ Petition before the High Coiurt against police inaction praying for a direction upon the police to register FIR, investigate and act based on your said complaint.
The bank cannot take any such decision which would be against the interest of its client especially without the knowledge of its customer.
It amounts to cheating or fraud, you can initiate steps against the bank manager and the staff involved in this offence or crime.
Dear Sir,
Normally the bank people take several signatures of the account holder saying no objection for transfer of amounts to satisfy income tax liability etc., First try to get all the relevant documents of FD terms and other terms then issue a legal notice then proceed to lodge criminal complaint under Se.104 IPC.
Section 406 in The Indian Penal Code. 406. Punishment for criminal breach of trust.—Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
