Theme: Money & Property

Cheque Truncation System

Cheque truncation is a form of cheque clearing system. It digitises a physical paper cheque into a substitute electronic form. This is done for transmitting the amount of money mentioned on the cheque to the paying bank. This is also referred to as ‘Local Cheque Clearing’.

In this process, an electronic image of a cheque is sent by the clearing house to the paying branch. This image contains all relevant information like date of presentation of the cheque, presenting bank, data on the MICR [Magnetic Ink Character recognition], etc. By this process, the paying branch gets these details automatically.

This is a much simpler and a faster process of clearing a cheque than physically transferring a cheque from one bank to another. Since cheque truncation speeds up the process of collecting cheques it results in better service to customers and reduces the scope of loss of cheques in physical transit. This process is faster and more secure.

Consumer Complaints against E-commerce Platforms

Consumers can also complain against unfair trade practices involving digital and other products bought through e-commerce platforms and retailers. Any person who owns, operates or manages any digital or electronic platform offering goods or services for sale, is an e-commerce entity. An e-commerce entity is separately governed by e-commerce rules(( Consumer Protection (E-Commerce) Rules, 2020.)) in India.

These rules are only applicable to professional and commercial businesses and not for an individual acting in their personal capacity(( Proviso to Rule 2, Consumer Protection (E-Commerce) Rules, 2020)). For instance, a consumer can complain against Amazon as it is an e-commerce entity regularly engaged in the activity of sale of goods through its e-commerce website. However, if there are issues with a product on a platform like Amazon, Amazon would be held liable for product liability actions, not the product manufacturer.

Interestingly, the product liability for an e-commerce entity extends beyond India. This means that these platforms are equally liable under the consumer protection law, in addition to their own country’s domestic laws(( Rule 2(2), Consumer Protection (E-Commerce) Rules, 2020.)). For instance, a foreign e-commerce entity such as Liyid delivers its products in India; in case of any harm caused due to defective products, a product liability action can be brought against Liyid in India and in the foreign country.

Liabilities of e-commerce platforms

E-commerce platforms are held liable for the following:

  • Price manipulations on their sites,(( Rule 4(11)(a), Consumer Protection (E-Commerce) Rules, 2020.))
  • Negligence in services provided and discrimination against customers(( Rule 4(11)(b), Consumer Protection (E-Commerce) Rules, 2020.)).
  • Misleading advertisements, unfair trade practices(( Rule 4(3), Consumer Protection (E-Commerce) Rules, 2020)) and inaccurate descriptions/information of products.
  • Refusing to refund or return a defective product(( Rule 7(4), Consumer Protection (E-Commerce) Rules, 2020)).
  • Failure to provide warnings or instructions with respect to the goods or services availed by a customer(( Section 85(c), Consumer Protection Act, 2019)).
  • False descriptions, and violations about the authenticity and images of the goods or services advertised for sale on their platform(( Rule 5(2), Consumer Protection (E-Commerce) Rules, 2020)).

However, they will not be liable if the dangers of the product are common knowledge. For example, if a consumer misuses or alters a dangerous product like flamethrowers then the e-commerce entity cannot be held liable for this(( Section 87(1), Consumer Protection Act, 2019)).

Complaining to E-Commerce Platforms

E-commerce platforms must establish a ‘Grievance Redressal Mechanism’ and should appoint a ‘Grievance Officer’ for Indian customers to get their concerns addressed(( Rule 4(4), Consumer Protection (E-Commerce) Rules, 2020)). The details about the Grievance Redressal Mechanism must be displayed on the e-commerce platform. The Grievance officer must acknowledge the complaint within 48 hours and address the concern within a period of one month(( Rule 4(5), Consumer Protection (E-Commerce) Rules, 2020)).

 

Filing a case with Consumer Forum

The Consumer Forum is present at the District, State and National Levels. You can file a case there depending on 2 factors:

  1. The amount of money you lost:
    • District Forum : Upto Rs. 20 Lakhs
    • State Commission : Rs. 20 Lakhs to Rs. 1 Crores
    • National Commission : Exceeding Rs. 1 Crores
  2. Where the loss happened :
    • You can file the complaint in the place where the money was lost, or where the opposite party (that is, the bank) carries on their business.

You should approach consumer forums only when you feel that the bank has been negligent, and has not given you proper service. The forum does not prosecute the actual culprit.

Generally, cases cannot be simultaneously filed before the consumer courts as well as the Banking Ombudsman.

What should I do when a ‘Right of Way’ dispute arises?

Easements or right of way is an owner’s or occupier’s right over other land, not his own, which allows them to enjoy their own property(( Section 4 of the Indian Easements Act 1882)). It includes the right to pass over the land of another person uninterruptedly to enjoy one’s own land. If there is obstruction of this right, you can sue for an injunction to stop the obstruction or for damages.

How is gifting an immovable property different from sale or purchase of a property?

A gift is a transfer of  movable or immovable property without consideration, i.e., without money. When a transfer of immovable property happens without any payment made while receiving such property, it is considered to be a gift. In such cases, the parties who give and receive property are known as Donor and Donee.  For a gift of immovable property to be valid under the law, the transfer must be:

  • Done through a registered legal instrument signed by or on behalf of the donor
  • Attested by at least two witnesses(( Section 123 of the TP Act.)).

Once it is signed and registered as per the due process of law, a gift deed cannot be revoked or taken back, except if the Donor and Donee agree beforehand that such revocation shall happen in certain conditions.

Time Limit for filing Tax Returns

For the financial year of 2019-20, the Income Tax Return (ITR) general filing deadline is November 30, 2020. The deadline to file belated and/or revised tax returns for the previous financial year of 2018-19 is July 31, 2020.

You can find other important due dates and income tax timelines for the year 2020 in this Tax Calendar.

In your Income Tax Return (ITR) form, you will have to select a category to file the form, depending on:

  • Date of filing the ITR form – You will be filing the form on/before the due date, or after due date
  • Type of income tax return – Generally, you will be filing an original ITR form applicable to that assessment year. After filing the original form, suppose you later have to correct or modify any details in the form. Then, you will be filing another revised or modified return in reference to the original.

Different Timelines while filing tax returns

Thus, different income tax returns can be filed as:

On or before the due date (( Section 139(1), Income Tax Act, 1961))

For example, the filing deadline is 30th November. If Priti files her income tax return on 15th November, then she has filed the ITR before the due date.

Belated return (after due date)(( Section 139(4), Income Tax Act, 1961))

If you have not submitted your income tax return within the time allowed to you, then you may submit the return for any financial year at any time before the end of the relevant assessment year, or before the completion of the assessment (whichever is earlier).

For example, take a situation where you had to submit your income tax return for the financial year 2019-20 by 30th June 2020, but you didn’t do so. In this case, your assessment year will be 2020-21. If the assessment year is ending on 31st March 2021, you will have to submit your return by this date (end of assessment year). If the income tax assessment happens before the end of the assessment year, then you will have to submit your delayed return before the assessment.

Revised return (( Section 139(5), Income Tax Act, 1961))

After submitting a return/belated return, if you discover any omission or any wrong statement, you can submit a revised return at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

For example, if you submitted your income tax return for the financial year 2019-20 by the deadline of 30th June 2020, your assessment year will be 2020-21. After submitting the return, if you realise that you have given some wrong information in the form, then you have to submit another revised form. This should have the correct information. If the assessment year is ending on 31st March 2021, you will have to submit your revised return by this date (end of assessment year). If the income tax assessment happens before the end of the assessment year, then you will have to submit your revised return before the assessment.

Modified return (( Section 92CD, Income Tax Act, 1961))

This applies in a situation where you have entered into an agreement after submitting your income tax return. If the agreement is applicable to or affects the financial year for which you have filed income tax, you will have to submit a modified return in accordance with the agreement.

For example, if you submitted your income tax return for the financial year 2019-20 by the deadline of 30th June 2020. Your assessment year will be 2020-21. After submitting the return, if you enter into an agreement that impacts your income tax returns for the financial year, then you have to submit a modified return including the details of the agreement.

The modified return should be filed within three months from the end of the month in which you entered the agreement. For instance, if you have entered into the agreement in July, you have to submit the modified return by the end of October (3 months).

When delay has been permitted by income tax authorities (( Section 119(2)(b), Income Tax Act, 1961))

The Central Board of Direct Taxes (CBDT) may authorise any income-tax authority to allow an application from you. The application may be for income tax exemption, deduction, refund, relief etc. Your application may be allowed/accepted even after the expiry period. You can take the help of a Chartered Accountant or Lawyer to do this.

Types of Agreements while renting

It is ideal to have an agreement or contract when you renting a house or giving your house on rent so that:

  • When there are any disagreements regarding money, utilities, and repairs, etc. the details of the contract would be enforceable and helpful for you.
  • When you want to file a complaint with the police/court you can show the written agreement/ contract as proof.
  • As a tenant/licensee, you can show your rent agreement as evidence of temporary residence.

Your rights and duties, whether as a landlord/licensor or a tenant/licensee, largely depend on the kind of agreement you sign for the purpose of renting a house. There are two kinds of agreements that are used for renting a property for residential purposes. They are:

Changing a Will

You can change your will as many times as you want. It is possible to make changes to your will even if it’s been registered.

Ideally, if you are making substantive changes to a will in order to convey your wishes properly, you should execute a codicil. A codicil is a written statement which supplements or modifies an existing will. It must be executed in the same manner as that of the original will.

You can also make changes by deleting, modifying or inserting new language in a will, you should sign and get the signature of the witnesses in the margins near the changes or at the end of the will by making a reference to the changes. No other changes can be made to an already executed will (unless it has been made to make it clear or legible).

Endorsing cheques

Endorsing cheques means that if you have an order cheque then you can endorse it to someone else. Endorsing means the payee can use the same order cheque to pay to someone else (the creditor) by writing that person’s name on the back of the cheque and signing it. When a person gets an endorsed cheque, he can collect the cash himself.

Example: Rahul gave a cheque to Raju. If Raju wants to endorse that cheque to Divya, he has to write Divya’s name behind the cheque and sign it.

Endorsing in favour of multiple people

A cheque can be endorsed any number of times. This means that a person can give it to someone, who can give it to someone else and the same can be continued multiple times. However, the bank may seek further information before crediting the amount in the account of the last person to whom the cheque is endorsed i.e. the final beneficiary of the cheque.

For Example

Jeet issued a cheque in favor of Sohini and Sohini decides to endorse the cheque to Adrija, by writing Adrija’s name behind the cheque given to her. Adrija can endorse the same cheque to any other person in the same way. Now, if the cheque has finally come to Param then the bank could ask for details (such as ID card) from Param when he approaches the bank to receive the cash.

Cheque that cannot be endorsed further

If a cheque is crossed and “Account Payee Only” or “Not Negotiable” is written on it, then it means that the cheque cannot be endorsed to anybody else. The cheque has to be necessarily collected by the banker of the payee on his behalf.

For Example

Simran has issued a cheque in favour of Namrata. But, she has written “Account Payee Only” or “Not Negotiable” and crossed the cheque. Then, Namrata cannot endorse it further.

Procedure to file a consumer complaint

A complaint(( Section 2(6), Consumer Protection Act, 2019)) can be filed electronically to the Integrated Grievance Redressal Mechanism portal (INGRAM), or offline with the consumer protection authorities such as district or state commissions to seek relief for consumer rights violations. Further there are helplines as well as phone based applications one can use to register complaints. If the complaint is not resolved, you can take the help of a lawyer to approach the consumer forums as the next step.

Complaint Process: Telephone 

 

Step-1: Check if you are a Consumer under the law

The complainant should be a consumer or an association of consumers(( Section 35(1), Consumer Protection Act, 2019)).

Step-2: Call the Helpline Number

Consumers can call the National Consumer Helpline: 1800-11-4000 or 14404 to register a complaint, except on national holidays. Alternatively, complaints can also be registered through SMS on + 91 8130009809.

Step-3: Give details about the Complaint

Name, contact details and address of the complainant and the seller must be mentioned to the helpline authority, along with the details of the complaint. The authority will register your complaint and give you a Unique Grievance ID.

Step-4: Track your Application

The grievance is then forwarded to the concerned seller, company, regulator, or authority for action. The action taken is updated against each grievance. Your grievance can be tracked with your Grievance ID by calling the helpline or through the Integrated Grievance Redressal Mechanism portal.

Step-5: Resolution of complaint

If your complaint is not resolved, then you can initiate a legal process by approaching the relevant Consumer Forum. The helpline authority can help in clarifying any doubts that you may have about the legal procedure.

E-Complaint Process: Internet (INGRAM Portal)

The Department of Consumer Affairs has launched a portal known as the Integrated Grievance Redress Mechanism (INGRAM) for bringing all stakeholders such as Consumers, Central and State Government Agencies, Private Companies, Regulators, Ombudsmen and call centres etc. onto a single platform. The portal will also help in creating awareness among consumers to protect their rights and inform them of their responsibilities. Consumers can register their grievances online through this portal.

Step-1: Check if you are a consumer under the law

The complainant should be a consumer under the law, meaning someone who is a consumer of a product or an association of consumers.

Step-2: Register on the INGRAM Portal

The complainant must register themselves as a consumer on the INGRAM portal. The complainant must fill in the required details and documents(( Rule 12(1), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020))to register their complaint, such as name and address of the complainant and the seller, the facts of the dispute and the relief that the complainant seeks(( Rule 12(1), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020)). A one time registration is required for lodging a grievance. For registration, go to the web portal http://consumerhelpline.gov.in and click on the login link. Sign up giving the details required, and verify through your email. The user id and password are created. Using this user id and password, enter the portal and fill in required details of the grievance, attaching necessary documents (if available).

Step-3: Pay the Fee

The complainant must pay the fee(( Section 35(2), Consumer Protection Act, 2019))(if applicable) for complaint registration through digital payment mode, or apps like BHIM App, UMANG App to the respective Consumer Commissions in accordance with the value of the goods(( Rule 7(2), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020)).

Step-4: Track your Application

Every grievance is registered and a Unique Grievance ID is issued. The grievance is forwarded to the concerned company, regulator, or authority for action. The action taken by them is updated against each grievance. The grievances filed can be tracked through the INGRAM portal.

Consumer Courts/Forums

Through the INGRAM portal, efforts are made to ensure that the grievance is redressed by taking up with the authorities concerned, which may be a company, ombudsman etc. However, if the issue is still pending, a consumer has a choice to approach the appropriate consumer court or forums with the help of a lawyer. Only complaints that are filed within 2 years since the dispute arose will be admitted for a hearing at the Consumer Dispute Redressal Commissions.