Income Declaration Scheme: Payments made by declarants on 3rd October, 2017 shall also be deemed to have been paid by due date for Third Installment, says CBDT [Read Circular]

The Central Board of Direct Taxes ( CBDT ) has clarified that, all payments made/effected by the declarants on 3rd October, 2017 shall also be deemed to have been paid by the due date for the third instalment i.e. 30th September, 2017 under Income Declaration Scheme ( IDS ).

Under the Income Declaration Scheme, 2016 (IDS), declarants were required to pay their determined liability towards tax, surcharge and penalty pertaining to the third installment as per the Form-2 issued by the Pro CIT/CIT, by 30th September, 2017.

While effecting payment of third installment of IDS around 30th September, 2017 due to closure of banks on account of holidays due to which they couldn’t effect payment of third installment within the stipulated time. Hence, a request has been made to the Board under section 119 of the Income-tax Act, 1961 (Act) read with section 195 of the IDS to grant appropriate relief in such cases.

The CBDT said that, “in accordance with provisions of section 10 of the General Clauses Act, 1897, the Board hereby directs that all payments made/effected by the declarants on 3rd October, 2017 shall also be deemed to have been paid by the due date for the third installment i.e. 30th September, 2017”.

The CBDT also stated that, “payment through cheque, RTGS, electronic transfer etc. towards payment of liability was tendered in the bank on or before 30th September, 2017. However, on bank’s endorsement, the date is mentioned after 30th September, 2017, which could render these declarations void. The genuine hardship of the declarants on account of procedural/technical issues with the banks has been considered. It has been decided that payments effected through cheque/RTGS/electronic transfer by the declarant by 3rd of October, 2017 (the deemed extended date for the third installment as per para 2 above) which were credited by the banks till 5th October, 2017 shall be deemed to have been paid by 30th September, 2017. In this regard, the concerned Pro CIT/CIT shall furnish a report to the Pro DGIT (Systems) after necessary verification; to treat such payments to have been paid by the due date for the third installment i.e. 30th September, 2017”.