Circular No. 77

1563. Banks instructed for making refunds to depositor who attained age of 65 years before 1-4-1983

What this is

Circular No. 77 was issued by the Central Board of Direct Taxes on 8 August 1972. Its subject is 1563. Banks instructed for making refunds to depositor who attained age of 65 years before 1-4-1983.

What it does

Tells depositors when compulsory deposits can be taken back on reaching 65. Under section 59 of the Finance Act, 1983, the balance to the credit of a depositor under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 who attained the age of 65 years before 1 April 1983 is refundable at his option on 1 June 1983. The Ministry of Finance has advised the Reserve Bank of India to instruct banks to make the refunds wherever preferred. A depositor who attained 65 on or after 1 April 1983 may take the refund at his option on 1 April of the financial year following the year in which he turned 65.

Why it was issued

To give effect to section 59 of the Finance Act, 1983 and to let depositors know that the banks had been instructed to pay the refunds.

Who it reaches

Depositors aged 65 or over under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974
Banks holding compulsory deposit accounts
Depositors turning 65 after 1 April 1983, whose option date is later

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.59	s.95

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

1563. Banks instructed for making refunds to depositor who attained age of 65 years before 1-4-1983
Under section 59 of the Finance Act, 1983, the balance standing to the credit of a depositor under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, who attained the age of 65 years before April 1, 1983, is refundable at his option on June 1, 1983. The Ministry of Finance have advised the Reserve Bank of India to instruct the banks to make the refunds wherever preferred. In respect of depositors who attained the age of 65 years on or after April 1, 1983, refunds can be had at their option on April 1 of the financial year following the year in which they attained the age of 65 years.
Press Note : Dated 9-6-1983, issued by the Ministry of Finance.

What to watch

This is a Press Note issued by the Ministry of Finance, not a CBDT income-tax circular, and it works on the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 and the Finance Act, 1983.
The text carries its own date of 9 June 1983 and speaks of a refund option on 1 June 1983, which does not match the circular heading and date this record is filed under; write from the text.
Refund is at the depositor's option, not automatic, so the deposit stays until the depositor asks for it.
The date of attaining 65 fixes the option date — before 1 April 1983 gives 1 June 1983, and after it gives 1 April of the following financial year.

Where you meet it

At the bank branch holding a compulsory deposit account, where a depositor of 65 or over asks for the balance.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 71/2017 [F.No. 187/13/2015(ITA.I)] / SO 2320(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 25 July 2017
Notification No. 40/2017 [F. No.173/429/2016-ITA-I ] / SO 1621(E) — Ministry of Finance 18 May 2017
Notification No. 100/2016/ F. No. 173/429/2016-ITA-I] / SO 3290(E) — Ministry of Finance 25 October 2016
Circular 13/2015 — Circular No. 13 of 2015 6 July 2015
Notification No. 57/2015 [F.No. 133/33/2015-TPL] / SO 1791(E) — [To BE Published in the Gazette of India,extraordinary, Part Ii,section 3, Sub-section (ii)] 1 July 2015

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A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.