Non-acceptance of IDS-2016 challan ITNS-286 by banks stating that Scheme has closed. CBDT lodges grievance with RBI

Non-acceptance of IDS-2016 challan ITNS-286 by banks stating that Scheme has closed on 30.09.2016. CBDT lodges grievance of declarants with RBI.

F. No.142/8/2016- TPL (Part)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(TPL Division)
***

New Delhi, dated 10th November, 2016

OFFICE MEMORANDUM

Sub:  Grievance  regarding  non-allowance  by  banks  to  make  payment under IDS, 2016 through ITNS-286

A representation has been received from a declarant under IDS, 2016 stating that the State Bank of India at Bengaluru has refused to accept payments through income-tax challan ITNS-286. It has been alleged that the bank authorities refused to accept payment stating that since IDS, 2016 has closed on 30.09.2016 the banks cannot accept the said challan beyond the said date.

2. In this context, your kind attention is invited to notification S.O. 2476(E) dated 20.07.2016 wherein the following time schedule has been prescribed for making payments under IDS, 2016:

(i) a minimum amount of 25% of the tax, surcharge and penalty to be paid by 30.11.2016;
(ii) a further amount of 25% of the tax, surcharge and penalty to be paid by 3.2017; and
(iii) the balance amount to be paid on or before 30.9.2017

3. In view of the above, I am directed to r quest you to kindly bring the above time schedule for making payments under IDS, 2016 to the notice of all the banks and issue directions to the banks to accept payments under IDS, 2016 upto 30.09.2017.

(Dr. T. S. Mapwal)
Under Secretary (TPL-IV)

Shri N.S. Vishwanathan
Deputy Governor
Reserve Bank of India
New Delhi

Authors Note:
In response to the above, Indian Banks Association vide its letter has requested all Banks to make note of the time schedule for payments of taxes under IDS-2016 and as directed accept payments under IDS, 2016 upto 30.09.2017 and also for such cases the banks should not seek source of funds.