PART XVII
AMENDMENTS TO THE FINANCE ACT, 2016
Amendment of section 187.
199. In the Finance Act, 2016 (28 of 2016.) (hereafter in this Part referred to as the principal Act), in section 187, in sub-section (1), the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:––
“Provided that where the amount of tax, surcharge and penalty, has not been paid within the due date notified under this sub-section, the Central Government may, by notification in the Official Gazette, specify the class of persons, who may, make the payment of such amount on or before such date as may be notified by the Central Government, along with the interest on such amount, at the rate of one per cent. for every month or part of a month comprised in the period commencing on the date immediately following the due date and ending on the date of such payment.”.
Notes on Clauses:
Clauses 199 and 200 of the Bill seek to amend certain provisions of the Finance Act, 2016 relating to the Income Declaration Scheme, 2016 (hereinafter referred to as the Scheme).
Sub-section (1) of section 187 of the said Act, inter alia, provides that the tax, surcharge and penalty in respect of the undisclosed income, shall be paid on or before a notified date.
It is proposed to insert a proviso in said sub-section to provide that where the amount of tax, surcharge and penalty, has not been paid within the due date notified under the said sub-section (1) of section 187, the Central Government may, by notification in the Official Gazette, specify the class of persons, who may, make the payment of such amount on or before such date as may be notified by the Central Government in the Official Gazette, along with the interest on such amount, at the rate of one per cent. for every month or part of a month comprised in the period commencing on the date immediately following the due date and ending on the date of such payment.
Section 191 of the said Act, inter alia, provides that any amount of tax, surcharge or penalty paid in pursuance of a declaration made under the Scheme shall not be refundable.
It is proposed to insert a proviso in the said section to provide that the Central Government may, by notification in the Official Gazette, specify the class of persons to whom the amount of tax, surcharge and penalty, paid in excess of the amount payable under the Scheme shall be refundable.
This amendment will take effect retrospectively from 1st June, 2016.
