Govt may extend tax payment deadline for black money scheme

The Centre may extend the September 30 deadline for taxpayers to declare their undisclosed income. The government has approved a request from the industry for tax to be paid in parts, PTI reported.

“The government is favourably considering extending the tax payment deadline as it understands the liquidity crunch around November,” a senior official said, adding that they are discussing the period by which the compliance window to make the payment can be extended.

Both Prime Minister Narendra Modi and Finance Minister Arun Jaitley had urged tax payers last month to declare their black money. Jaitley had also assured them that they will not be subject to any scrutiny if they adhered to the compliance window. He held meetings with chartered accountants, tax professionals and members of industry bodies to discuss their fears regarding the deadline.

The four-month compliance window under the Income Declaration Scheme 2016 opened on June 1. It was announced along with the 2016-'17 Budget. The scheme allows domestic black money holders to declare their undisclosed income, pay a tax and penalty of 45%, and avoid prosecution. #casansaar