Acceptance of demonetized currency for making payments towards tax, penalty, surcharge and deposit under Pradhan Mantri Garib Kalyan Yojana
CBDT had earlier clarified that up to 30.12.2016, payment towards tax, surcharge, penalty and deposit under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) can be made in old Bank Notes of Rupees 500 and Rupees 1000 denomination issued by the RBI.
It is reported by Income Tax field formations that since the Reserve Bank of India (RBI) had not issued FAQs or directions to the banks to accept old demonetized notes for payments under PMGKY, some of the banks were not clear about the acceptability of the old notes for the purposes of PMGKY.
CBDT informs that RBI had yesterday revised the FAQ and incorporated the following clarification.
29. Can payments towards tax, penalty, surcharge and deposit under PMGKY be made in SBNs?
The Central Government has decided that up to 30.12.2016, the payment towards tax, surcharge, penalty and deposit under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), can be made in Old Bank Notes of Rs. 500 and Rs. 1000 denomination issued by the RBI. The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana (PMGKY), 2016 has commenced on 17th December, 2016 and is open for declarations upto 31st march, 2017. The payment of tax, surcharge and penalty under the Scheme is to be made through challan ITNS-287 and the deposits are to be made in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016. The notification relating to PMGKY are available on the website www.incometaxindia.gov.in
CBDT requests the Principal Chief Commissioners that the clarification issued by RBI may be urgently brought to the notice of the taxpayers and the banks so that payments under PMGKY in old demonetized currencies are accepted by the banks without any difficulty to the taxpayers.
They have three more days.