Banks to accept payments under Income Disclosure Scheme till 2017 without seeking source

Zee Media Bureau

New Delhi: Banks will be accepting the first installments of tax payments under the  Income Disclosure Scheme 2016 with creating any hassle for the declarant or seek any source of funds.

IDS 2016 was announced by Finance Minister Arun Jaitley in the Union Budget 2016, as a one-time opportunity (open from June to September) for domestic black money holders to make disclosures by paying 45% tax and penalty.

The first installment of tax is due to be paid by November-end.

The Indian Banks' Association (IBA) has written a letter to all its members to follow the directive clearly of not seeking source of funds. "Accordingly, all the member banks are requested to make note of the...Time schedule and as directed accept payments under IDS, 2016 up to September 30, 2017 and also for such cases the banks should not seek source of funds," it said adding, "we request you to sensitise your branches accordingly".

It "has been alleged that the bank authorities are refusing to accept payment stating that since IDS, 2016 has closed on September 30, the banks cannot accept the challan beyond the date".

The Banking industry body has also referred to a recent CBDT communication to RBI which cited a complaint from a declarant that he/she could not deposit the payment as a bank branch in Bengaluru allegedly refused to accept the tax and penalty as per plan of the Income Declaration Scheme (IDS) that ended on September 30.

CBDT, which is the I-T department's policy-making body, noted that the scheme stipulates that a minimum amount of 25 percent of the tax, surcharge and penalty is to be paid by November 30, 2016. 

The CBDT has also appended the scheme of the IDS which stipulates that a minimum amount of 25 percent of the tax, surcharge and penalty is to be paid by November 30, 2016; a further amount of 25 percent of the tax, surcharge and penalty to be paid by March, 31 next year; and the balance amount to be paid on or before September 30, 2017.

With PTI inputs