Banks Can Accept Tax Dues In Cash Under Income Declaration Scheme: RBI

The Reserve Bank of India (RBI) directed the banks to accept the tax dues in cash under the domestic black money declaration scheme which will close on 30^th September.

Under the Income Declaration Scheme 2016, which came into effect on 1^st June, one can come clean by paying the tax, penalty and cess totalling 45% of the undisclosed income. It was brought to the RBI's notice by the government that the banks are averse in allowing the deposit of large amounts of cash by the declarants under the scheme.

The central bank said they have advice that banks must constantly accept the cash, irrespective of amount, over the counters from all the declarants who desire to deposit the cash at the counters, including the deposits under the above Scheme through challan ITNS-286.

The banks, therefore, have to observe with the Know Your Customer requirements.

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