The Centre has said that domestic black money holders can now pay tax on their undisclosed income (during the June 1-September 30 compliance window) in cash. The Central Board of Direct Taxes has urged the Reserve Bank of India to issue instructions to banks to collect over-the-counter payments of tax in cash, reported The Financial Express.
In its fifth set of clarifications in the form of frequently asked questions on the Income Declaration Scheme, the Income Tax Department added that authorities will not question the valuation reports of accredited valuers. According to Economic Times, the department officials have said that "in case of any misrepresentation, appropriate action shall be taken against the registered valuer."
The Income Declaration Scheme 2016 was announced by Finance Minister Arun Jaitley. According to the scheme, domestic black money holders can declare their undisclosed income, pay 45% tax and a penalty, and escape prosecution. Jaitley had assured defaulters of immunity from any scrutiny, inquiry, or prosecution under the Income Tax Act or the Wealth Tax Act if they declare their undisclosed income within the stipulated one-time compliance window.