No.RB/CIR/OTC-IDS/1404A

November 25, 2016

The Chief Executives of All Member Banks

Dear Sir/Madam,

Income Declaration Scheme 2016 – Grievance regarding non-acceptance by banks of payments under IDS, 2016 through ITNS-286

We have received a communication dated November 23, 2016 from RBI on the captioned subject along with the Office Memorandum F.No.142/8/2016-TPL (Part) dated November 10, 2016 by the GOI, MOF, Department of Revenue, CBDT [copy enclosed].

It has been alleged that the bank authorities are refusing to accept payment stating that since IDS, 2016 has closed on 30.09.2016 the banks cannot accept the challan beyond the date.

The Office Memorandum mentions about the revised Schedule for Making Payments of tax, surcharge and penalty:

(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.

Accordingly, all the member banks are requested to make note of the above time schedule 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. [Kindly refer our appended circular in this regard]

We request you to sensitise your branches accordingly.

Yours faithfully,

K Unnikrishnan

Chief Executive (Offg)

Income Declaration Scheme: banks must accept ITNS-286 payments through 30 September 2017 and not seek sources. Banks are directed to accept payments under the Income Declaration Scheme, 2016 via ITNS 286 up to the scheme's final payment deadline and not to seek the source of funds; the Government prescribed a staggered payment schedule requiring minimum instalments of 25% and further 25% before the balance is paid, and Reserve Bank/industry circulars instruct banks to notify and sensitize branches while applying KYC identification without enquiring into source of cash deposits.