The Compulsory Deposit Scheme (Income-tax Payers) Act, 1974-Repayments regarding - Income Tax - 468/1986

The Compulsory Deposit Scheme (Income-tax Payers) Act, 1974-Repayments regarding Circular No. 468 Dated 26/8/1986 To All Chief Commissioners (Admn.) and Commissioners of Income-tax. Sir, Subject: The Compulsory Deposit Scheme (Income-tax Payers) Act, 1974-Repayments regarding. The repayment of deposits and payment of interest on such deposits under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, is governed by the provisions of section 8 of the Act. The second proviso to section 8(1) of the Act permits early repayment of the deposit or any instalment thereof together with the interest due in any case in which the Income-tax Officer is satisfied that extreme hardship will be caused unless such repayment is made. 2. The Board had occasion to consider the cases of hardship caused to the taxpayers who are more than 60 years of age and to the legal heirs of the deceased depositors. The Board consider it desirable to clarify the existing scheme of repayment. In relaxation of the existing scheme of repayment, a full repayment of the deposit together with interest due may be made to those depositors who have attained the age of 60 years on the last day of the immediately preceding financial year and also to the nominees in cases where the depositors have died. The cases of this type should be treated as cases of extreme hardship covered under the second proviso to section 8(1) of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974. 3. This may be brought to the notice of all officers under your charge. 4. Hindi version will follow shortly. Yours faithfully, (Sd.) Y.K. Batra, Under Secretary, Central Board of Direct Taxes.