Issue arised : Whether the payment made by the assessee or the declarant on 3rd October, 2017 shall be deemed to be paid on 30th September itself?
Background : As per circular, CBDT Notification 59/2016 dt. 20 July, 2016, the government had decided to revise the time schedule for making payments under the Income Disclosure Scheme, 2016.
The amendment was made by CBDT for the giving relaxation for making payment of Tax in 3 installments under the Income Declaration Scheme 2016.
Due to this amendment, the last or third installment for making payment as per Form – 2 issued by Pro CIT/CIT) was held on 30th day of the September (which was closed due to holiday).
Hence, By referring the section 119 of the Income-tax Act, 1961 (Act) read with section 195, a relief has been demanded by CBDT.
Clarification by CBDT : The CBDT has made reference by taking into consideration the provisions of section 10 of the General Clauses Act, 1897, says that all the payments related to 3rd installment made on 3rd October shall be deemed to be paid on the due date ie. 30th September only, as the banks were closed on that day for effecting the payments.
Also, It is seen that the banks were closed on 1st October,2017 & 2nd October, 2017 also, and the banks started to regulate the normal transactions only on 3rd October, 2017 after 30th September, 2017.
Furthermore, by considering the payment through cheque, RTGS, electronic transfer etc. towards the third installment in the bank on or before 30th September, 2017, it has been decided that these mode payments transferred on 3rd October, 2017 which were which were credited by the banks till 5th October, 2017 shall also be deemed to have been paid by 30th September, 2017 (as the payments after due dates are also deemed on due date).
A report shall be furnished to the Pr. DGIT (Systems) by the concerned Pr. CIT/CIT to treat such payments to have been paid by the due date for the third installment i.e. 30th September, 2017.