Reserve Bank of India (RBI) has instructed banks to accept cash deposit at the counter from people surrendering unaccounted wealth under Income Declaration Scheme (IDS).
On 8 September, RBI instructed banks to accept cash deposit from people declaring their wealth under the IDS scheme.
Income declaration scheme given the opportunity to people who have not paid full taxes in the past to come forward and declared their undisclosed assets or income.
Important point to know Income Declaration Scheme :
What is Income Declaration Scheme 2016 : The Scheme, which provides opportunity for people to declare their undisclosed assets and income came into effect from 1 June 2016. Under this scheme, such people can declare their assets and pay taxes, surcharge or penalty.
The person making declaration under this scheme will have to pay income tax at the rate of 30 percent of the value of undisclosed income plus a surcharge of 25 percent thereon.
Additionally, the person will be liable to pay a penalty at the rate of 25% of the tax, which would make the total payment 45% of the undisclosed income.
What is the last date / deadline for IDS Scheme :
Earlier the last date for making entire payment was 30 November 2016. But the centre announced an extension of last date under the IDS scheme. As per new deadline, a minimum of 25 per cent of the tax, surcharge and penalty is to be paid by November 30, 2016, another 25 per cent by March 31, 2017, and the remaining amount by September 30, 2017.