Government allows more time for paying tax to those declaring unaccounted assets under black money scheme

The government has allowed more time for paying tax to those declaring unaccounted assets under the black money scheme currently running. Only half the tax, surcharge and penalty has to be paid in the current year. The remainaing amount can be paid by September 30, 2017. "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 30thNovember, 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," the government said justifying the relaxation.

"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," a statement issued by the finance minsitry said.

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Under the initial terms, the entire tax had to be paid by November 30, 2016 and the declarations could be made by September 30, 2016.

"Taking into consideration the practical difficulties of the stakeholders, the Government has decided to revise the time schedule for making payments under the Scheme," the statement said.

A minimum amount of 25% of the tax, surcharge and penalty to be paid by November 30, 2016, a further amount of 25% of the tax, surcharge and penalty to be paid by March 31, 2017 and the balance amount to be paid on or before September 30, 2017.