The Finance Minister, Nirmala Sitharaman while announcing the Budget 2021-22 has proposed the refund of excess payment to be sanctioned but no interest under Income Declaration Scheme, 2016 (IDS).
Presently, as per section 191 of the Finance Act, 2016, any excess amount of tax, surcharge or penalty paid in pursuance of a declaration made under the Income Declaration Scheme, 2016 shall not be refundable. The proviso to the section provides that the Central Government may, by notification, specify a class of persons to whom the excess amount so paid shall be refundable.
However, the Union Budget 2021 has proposed to amend the proviso of section 191 of the Finance Act, 2016 which says that such excess amount of tax, surcharge or penalty paid in pursuance of a declaration made under the Scheme shall be refundable to the specified class of persons without payment of any interest.
The amendment will take effect retrospectively from 1st June, 2016.
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