IDS disclosures valid if taxes realised by Dec 5: CBDT
In a minor relaxation to IDS tax payment rules, the Income Tax Department has said disclosures under the scheme will be considered valid even if the tax amount has been realised by December 5.
The first instalment of taxes was to be paid by November 30.
The government had come out with a 4-month long Income Disclosure Scheme, which closed on September 30, 2016, to give an option to domestic black money holders to declare their unaccounted wealth and come clean by paying 45 per cent tax and penalty.
In an instruction to principal commissioners, the income tax department has asked them to condone the delay in payment of first instalment which has arisen due to “genuine technical difficulties”.
“CBDT hereby directs... 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,” it said.
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.
IDS, announced in the Budget, gave an opportunity to holders of illegal wealth to come clean by paying a total 45 per cent tax on the so far hidden assets.