The Income Tax Department has asked those who declared money under the Income Declaration Scheme to pay the first instalment on their tax by November 30, failing which their declarations will be made invalid, PTI reported. Under the scheme, domestic black money holders could declare their undisclosed income, pay 45% tax and a penalty, and escape prosecution. The scheme started on June 1, and citizens had four months to declare their money.
While the first instalment of 25% of the tax due will have to be paid by November 30, the next payment of 25% will have to be made by March 31, 2017. The remaining amount will have to be paid to the exchequer by September 30, 2017.
Meanwhile, the Indian Banking Association asked all its members to accept tax payments from declarants and not question them on the source of their funds. The IBA cited a communication to the Reserve Bank of India by the Central Board of Direct Taxes, which alleged that a bank branch in Bengaluru refused to accept the instalment from a customer who had disclosed money under the IDS.
In October, Union Finance Minister Arun Jaitley said that 64,275 people had declared assets worth Rs 65,250 crore under the IDS, which ended on September 30. This means the government will earn close to Rs 30,000 crore after the imposition of tax and penalty. Jaitley said the money will go into the Consolidated Fund of India and will be used for social security purposes.
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