(1) Subject to the provisions of sub-section (2), the income-tax payable under this Ordinance in, respect of the voluntarily disclosed Income shall be paid by the declarant before making the declaration and the declaration shall be accompanied by proof of payment of such tax.
Time for payment of Incometax and for investment in notified securities.
(2) If the Commissioner is satisfied, on an application made in this behalf by the declarant, that the declarant is unable, for good and sufficient reasons, to pay the full amount of income-tax in respect of the voluntarily disclosed income in accordance with sub-section (1), he may extend the time for payment of the amount which remains unpaid or allow payment thereof by instalments if the declarant furnishes adequate security for the payment thereof; so, however, that an amount which is not less than one-half of the amount of income-tax payable in respect of the voluntarily dislcosed income shall be paid on or before the 31st day of March, 1976 and the remainder, if any, on or before the 31st day of March, 1977.
668 THE GAZETTE OF INDIA EXTRAORDINABY [PART II—
(3) A declarant shall not be considered to have furnished adequate security for the purposes of sub-section (2), unless—
(1) at least one-half of the unpaid amount is guaranteed by a scheduled bank or secured by an assignment made by the declarant in favour of the President of India of any security of the Central or a State Government; and
(ii) in. respect of the remainder, if any, the declarant furnishes security in such form and in such manner as the Commissioner may, in his discretion, direct.
Explanation.—For the purposes of this sub-section,—
(a) where an assignment of Government securities is made in favour of the President of India, the amount covered by such assignment shall be the market value of the securities!, on the date of the assignment;
(b) "scheduled bank" means the State Bank of Indiai constituted under the State Bank of India Act, 1955, a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959, a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 or any other bank, being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934.
23 of 1985.
38 of 1959.
5 of 1970.
2 of 1934.
(4) The investment in the securities referred to in sub-section (3) of section 3 shall be made by the declarant within thirty days from the date on which the declaration is made by him under sub-section (I) of that section.
6. If the amount of income-tax payable in respect of the voluntarily disclosed income is not paid on or before the 31st day of March, 1976, the declarant shall be liable to pay simple interest at twelve per cent, per annum on the amount remaining unpaid from the 1st day of Apritr- 1976 to the date of payment and the provisions of the Income-tax Act and the rules made thereunder shall, so far as may be, apply as if the interest payable under this section were interest payable under subsection (2) of section 220 of that Act.
Interest payable fey declarant,