The Income Tax Department has eased some tax payment rules under Income Declaration Scheme (IDS) and said that disclosures under the scheme will be considered valid even if the tax amount has been realised by December 5, 2016. The first instalment of taxes was to be paid by November 30.
CBDT has said that it directed to accept the request for condonation of delay in payment of tax payable under the scheme in cases where payment has been made through cheque, RTGS, electronic transfer etc on or before the date of November 30, 2016, but the same has been credited by banks after the due date of November 30, 2016, but on or before the December 5, 2016. The instruction follows representations received from field authorities and stakeholders that there has been delay in payment of first instalment of tax, surcharge and penalty under IDS in some cases owing to some technical errors in the system, non-deposit of cheque by collecting banks, payment made by filling wrong challan and the like.
In order to give an option to domestic black money holders to declare their unaccounted wealth, the government had come out with a 4-month long Income Disclosure Scheme. Under the scheme, the black money holder had to pay 45 percent tax and penalty. The government had also given the option to the declarants of paying tax amount in three instalments. The first instalment of 25 percent was due on November 30, 2016. The second of similar amount is to be paid by March 2017 and the remaining 50 percent by September 30, 2017.
