New Delhi: The government Thursday extended the deadline for payment of tax and penalty under the black money disclosure scheme and allowed declarants to pay the amount in three installments by 30 September, 2017.
The first installment of 25 percent under the Income Declaration Scheme 2016 will have to be paid by November 2016 to be followed by another installment of 25 percent by 31 March, 2017.
The remaining amount, according to a finance ministry statement, will have to be paid to the exchequer by 30 September, 2017.
Earlier the tax, surcharge and penalty under the black money disclosure window were required to be paid by 30 November this year.
The Revenue Department has decided to revise the time schedule for making payments after taking into consideration the practical difficulties being faced by the stakeholders, it said.
"During the course of meetings and seminars held in different parts of the country, various stakeholders have expressed concern that the time period available under the Scheme up to 30 November, 2016 for making payment of tax, surcharge and penalty is very short, especially where funds in liquid form are not readily available with the declarants.
"It has also been mentioned that for making payment by 30 November, 2016, the declarants may have to opt for distress sale of the assets," it added.
In their meetings last month with Finance Minister Arun Jaitley, industry associations, CAs and tax professionals had expressed concerns over the payment schedule under the compliance window.
Various trade bodies had also asked for leniency in payment of taxes and sought extension of the scheme to address the cash flow problem around November.
The Budget for 2016-17 announced a 4-month compliance window, allowing domestic black money holders to declare their unaccounted wealth, pay a tax and penalty of 45 percent and escape prosecution and harsher punishment.
The window under the IDS 2016 opened on 1 June and will close on 30 September. Tax and penalty on income declared, as per the original scheme, is to be paid by November.
The Central Board of Direct Taxes (CBDT) has already issued four sets of clarifications on the scheme in form of frequently asked questions (FAQs).
The scheme applies to both residents as well as non-residents (as both these categories could have taxable income that can be declared under the IDS).
Updated Date: Jul 14, 2016 15:48 PM