IDS: Banks to accept cash deposits

New Delhi: The Reserve Bank of India (RBI) has instructed banks to accept cash deposits from all the parties under the Income Declaration Scheme (IDS).
The central bank has also asked banks to accept cash deposits over the counter — irrespective of amount — for making payment under the scheme, according to a government statement.
The tax department had earlier requested the RBI to instruct banks to allow payment of tax under the scheme in cash and allow deposits over the counter.
The Income Declaration Scheme, 2016, provides an opportunity to persons, who have not paid full taxes in the past, to come clean and declare their undisclosed income and assets. The scheme kicked off on June 1 and is open up to September 30.
The tax department also extended the date for filing returns by taxpayers, whose accounts are required to be audited nder the IT Act.
“Taking into consideration that the last date for making declarations under the IDS is also September 30, the Central Board of Direct Taxes has decided to extend the last date for such returns to October 17 to facilitate ease of compliance,” according to a statement from the finance ministry.
The taxpayers whose business receipts exceed Rs 1 crore or professional receipts exceed Rs 25 lakh during the previous year 2015-16 are required to file an income tax return accompanied by an audit report by October 17.