IBA asks banks to accept tax payment due under Income Declaration Scheme

With the last date for paying the first installment of due taxes and penalty under the one-time black money window IDS nearing, banks have been asked to accept the old 500 rupee notes from the declarants under the scheme and not seek the source of funds from them.

They have also been asked to ensure that such payments were accepted from the declarants without any hassle. The Indian Banks' Association (IBA) has written a letter to all its members that RBI guidelines clearly sets out that banks can accept old 500 rupee denomination notes for payment of taxes and penalties. Thus, there should not be any doubt that these notes can be accepted for payment of tax, surcharge and penalties under the IDS, 2016, upto December 15, 2016.