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Black money: Banks can accept tax dues in cash under IDS, says RBI
Under the Income Declaration Scheme 2016, which came into effect on June 1, one can come clean by paying tax, penalty and cess totalling 45 percent of the undisclosed income.
Mumbai: RBI Thursday directed banks to accept tax dues in cash under the domestic black money declaration scheme which closes on September 30.
Under the Income Declaration Scheme 2016, which came into effect on June 1, one can come clean by paying tax, penalty and cess totalling 45 percent of the undisclosed income.
It was brought to RBI's notice by the government that "banks are hesitant" in allowing deposit of large amounts of cash by declarants under the scheme.
"We advise that banks must invariably accept cash, irrespective of amount, over the counters from all declarants who desire to deposit cash at the counters, including deposits under the above Scheme through challan ITNS- 286," the central bank said.
The banks, however, have to comply with the Know Your Customer requirements.