Making the direct tax dispute resolution scheme attractive, the Union Cabinet on Wednesday expanded its scope to cover litigation pending in arbitration forums and debt recovery tribunals (DRTs). The scheme will also include cases related to revision and small-value search disputes.
The Cabinet also reduced the disputed amount by half for those assessees who got favourable orders but the income-tax department challenged those.
The move comes a week after Finance Minister Nirmala Sitharaman introduced the Direct Tax Vivad se Vishwas Bill, 2020, in the Lok Sabha to resolve disputed tax cases, amounting to Rs 9.3 trillion, giving effect to the Budget announcement.
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The scheme offers waiver of interest, penalty, and prosecution for settling tax disputes. It was earlier limited to cases pending before the commissioner (appeals), the Income Tax Appellate Tribunal, high courts or the Supreme Court as of January 31, 2020. Now, a complete waiver of interest and penalty will be given if tax dues are paid by March 31. An additional 10 per cent of the disputed amount will have to be paid after that.
Source: Business Standard