-co rrlgendu; to the it\\,i(;me-tj·x (secl;tn m enm';ent) bill, 19'1 (i2ee/as ,intr2duceu, in lok sabhp ) p ag-e 2, line 27,-i2£  ettertl ~ "letter" new uelhi ; ~epte!l'lber 7  l~t & n ad rc) 1'6, 1903 ~:;kar biu, no 111 :! 1"1  the income-tax (second amendment) bill, 1981 a billfurther to amend the income-tax act, 1961 be it enacted by parliament in the thirty-second year of the republic of 'india as follawr-1 (1) this act may be called the income-tax (second amendment) act, 1981 short tit»· and commenccr ment 5 (2) section 3 shlill come into fpr<:e at once and the temainj~ provi-'lions of this act shall be dee'med to have come into force on the utb day of july, 1981 43 of 1981 2 in the income-tax act, 1981 (hereidafter ·referred to 8& the'prilleipel lnaertiqn act) after chapter xxa the following chapter shah be ineaw, of new 10 namely: _ chapter, xxb  'chapter xxb r!q~t as to mode of repayment in certain cam=; 10 counteract evasion of taxmode of 15 r~ay­ment of certain deposits 269t no company (incl'uding a b"lnking company) co-operative society or firm shall repay to any person any deposit otherwise than by an account payee cheque or account payee bank draft where the amo'unt of the deposit or where the amount of the deposit is to be repaid together ,vith !lny interest the aggregate cif the ~mount i)f the deposit and 'luch lnterest i!ll ten thousand rupees er more: go provided tha t whe't'f' the repayment is by a banking company or co-operative hank  ,11e1, r~navrnetl+ ms\' also be made b,' crediting the amount of such deposit to the account (if any) with such company or bank of the person to whom such deposit has to be repaid explanation-for the purposes of this section,-(i) "banking company" shall have the meaning assigned to it in clause (a) of the explanatio-n to sub-section (8) of section 5 4m; (ii) "deposit" means any deposit of money which is repayable after notice or repayable after a period' 3 in the principal act, in chapter xxb (as inserted by section 2), after section 269t, the following section shall be inserted, namely:-10 insertion of new section 289tt "269tt notwithstanding anything contained in any other law for the time being in force, the amount payable on redemption of special bearer bonds, 1991, shall be paid only by an account payee cheque or account payee bank draft drawn in the name of the person to whom such payment is to be made" 15 mode of repayment of special bearer bonda 1991 of after section 276d :>f the principal act, the following section shall be {merted, namely:-insertion of new section 278e "276e if a person, without ~sonable' cause or excuse, repays any neposit referred to in section '269'1' otherwise than in accordance with the provisions of that section, he shall be punishable with lm- !ao prisonment for a term which may extend to two years and shall also be liable to ftne equal to the amount of such deposit" failure to comply with the provisions ofaectlon 28&'1' 5 in section 278a of the principal act, after the words; ftgures and letters "or section 276cc", the words, figures and letter "or section 278e" shall be inserted ' amendment of sect10d 27ba • in section 279 of the principal act, in sub-section (1), after the word figures and etter "~tion 276d," the word, figures and letter "section 276e," shall be inserted amendment of  section 2'11 , (1) the income-tax (amendment) repeal6d ordinanee 1981 is hereby go 8 of 1981 (2) notwithstanding such repeal, anything done or any action taken under the principal act, fls amended by the said ordinance, shall be deemed to have been done' or taken under the principal act ~ amended ~y this act  statement of objects and reasonsin order to curb circulation of black money in the form of deposits with banks, companies, co-operative societies and partnership firms by tax evaders either in their own names or in the names of others and to enable the income-tax authorities to identify the persons who have made such deposits, the income-tax (amendment) ordinance, 1981 was promulgated by the president on the 11th july, 198! 2 the ordinance inserted a new section 269t in the income-tax act, 196] to provide that no company, co-operative society ~r firm shall repay any time deposit otherwise than by an account payee cheque or an account payee bank draft or in the case of repayment by a bank by crediting the amount to the account of the payee with the bank where the amount of such deposit or the amount of such deposit with interest payable thereon is ten thousand rupees or more the ordinance' also mane the necessary amendments in the income-tax act to provide for punishment (fine equal to the amount of deposit and imprisonment for a period not exceeding two years) for contravention of the provision~ of this section 3 the bill seeks to replace the ordinance it also seeks to make an amendment in the income-tax act to provide for the manner of repayment of the amount of special bearer bonds the new section 269tt proposed to be inserted in the income-tax act for this purpose seeks to provide that the repayment at the time of the redemption of the special bearer bonds should be made by an account payee cheque or an account payee bank draft only this is in pursuance of an undertaking given by government before the supreme court in a case in which the constitutional validity of the special bearer bonds scheme was challenged 4  the bill seeks to achieve the above objects new delhi: the 3rd september, 1981 r venkataraman  annexure extracts from the income-tax act, 1961(43 of 1961) -  - - - punishnj":'ntfor second and subsequent of!·~m·es 278a if any per:~ " convicted nf an ofience under section 276b or sub-section (1) of section 276c or section 276cc or section 2'17 or section 278 is again convicted of an offence under any of the aforesaid provis'ons, he shall be punishable for th2 second and for every s'ubsequent offence with rigorous imprisonment for a term which shall not be less th1n six months 1)ut which may extend to 'seven years and with fine - -  - - prosecution to be at instance of commissioner  279 (1) a person shall not be proceeded against for an offence under section 275a, section 276a, section 276:3 section 276c, section 276cc, section 276d section 277, sect'on 276 or section 278a except at the instance of the commissioner - - - - - memotczftclum ,xplaining the mocujicacioftl contained in the incc>me-tcaz (second amendl1tent) bill, 1981, which leeks to repeal am replace the incometax (amendment) ordinance, 1981 apart froil1 minor chang~s of a v~rbal nature, the bill contains the following modifreatiori:-claus~ 3 of the bill proposes to insert a new section 269tt in the income-tax act, 1961, which seeks to provide that the repayment at the time of the redemption of the special bearer bonds, 1991, should be made by an account payee cheque or an account payee bank: draft only 'this is in pursuance 'of an undertaking given by government before the supreme court in a case in which the constitutional validity of the special bearer bonds scheme was challenpd - bill further to amend the income-tax act, 1961 - (shri r venkatgnm4ft, minister of fifl4nce) 