AHMEDABAD: Ahmedabad Municipal Corporation’s (AMC) revenue committee has proposed to do away with the rule of a five-year lock-in period imposed on taxpayers whose cheques bounce once.
At present, the AMC bans paying taxes through cheques for a period of five years if a cheque is returned by the bank. “Due to this rule taxpayers have to pay their taxes in cash if their cheque bounced once. As we are trying to digitalize the tax department and our focus is on cashless transactions, this rule does not serve a purpose,” said Jainik Vakil, chairman of AMC’s revenue committee. He said the department will make amendments and send them for approval to the state finance department.
