News Nation Logo

Banks to accept Income Disclosure Scheme payments till 2017 without asking source: Indian Banks' Association

Banks Have Been Directed By Indian Bank's Association To Ensure Hassle Free Acceptance Of First Installment Of Due Taxes And Penalty With The One-time Black Money Window Of IDS Nearing The Last Date.

PTI | Updated on: 28 Nov 2016, 12:23:54 PM
Indian Banks' Association - File Photo

New Delhi:

Banks have been directed by Indian Banks' Association to ensure hassle free acceptance of first installment of due taxes and penalty with the one-time black money window of IDS nearing the last date.

With the last date for paying the income tax dues approaching anytime soon, banks have been asked to ensure that such payments are accepted without any hassle and the source of funds is not sought from the declarant.

The Indian Banks’ Association (IBA) has written a letter to all its members in which it 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 per cent of the tax, surcharge and penalty is to be paid by November 30, 2016.

“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 added that the recent communication from the Central Board of Direct Taxes to the RBI, subsequently sent to the IBA for action, had said that 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 CBDT has also appended the scheme of the IDS which stipulates that a minimum amount of 25 per cent of the tax, surcharge and penalty is to be paid by November 30, 2016; a further amount of 25 per cent 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.

The I-T department only yesterday issued advertisements in this regard in leading national dailies stating that non-payment of the first installment of tax and penalty by November 30 on the part of declarants will render their declaration under IDS as “invalid”.

As per official data, 64,275 declarants had disclosed an amount of Rs 65,250 crore under IDS which would yield about Rs 30,000 crore in taxes to the government.

The four-month IDS was a one-time window, beginning June, given to black money holders to declare their stash and come clean by paying 45 per cent tax and penalty.

For all the Latest Business News, Finance & Markets News, Download News Nation Android and iOS Mobile Apps.

First Published : 28 Nov 2016, 12:05:00 PM