During the course of meetings and seminars held in different parts of the country, various stakeholders have expressed concern that the time period available under the Scheme up to 30th November, 2016 for making payment of tax, surcharge and penalty is very short, especially where funds in liquid form are not readily available with the declarants. It has also been mentioned that for making payment by 30.11.2016, the declarants may have to opt for distress sale of the assets.

Taking into consideration the practical difficulties of the stakeholders, the Government has decided to revise the time schedule for making payments under the Scheme as under:

(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 31.3.2017; and (iii) the balance amount to be paid on or before 30.9.2017.

A Notification to this effect shall be issued shortly.

Phased payment schedule under Income Declaration Scheme allows staged discharge of declared tax liabilities to ease liquidity pressures. Income Declaration Scheme 2016 permits phased payment of declared tax, surcharge and penalty in three instalments-an initial portion by the existing deadline, a further interim instalment in the next fiscal period, and the balance by a later specified date-implemented by Notification to address stakeholder liquidity concerns.