Source: News Bharati English30 Dec 2016 16:15:32
New Delhi, December 30: The government on Friday extended the Tax Dispute Resolution Scheme by one month to January 31, 2017 for the convenience of the taxpayers. The scheme was due to close on 31st December, 2016. The scheme provides for waiving interest and penalties if the principal amount involved in retrospective tax cases is paid.The Direct Tax Dispute Resolution Scheme, announced by Finance Minister Arun Jaitley in the budget for 2016-17, seeks not just to settle disputes in retrospective taxes, but end nearly 2.6 lakh pending tax cases where Rs 5.16 lakh crore are locked in. For a disputed tax amount of up to Rs 10 lakh, the penalty will be forgone. In cases where the disputed tax amount is above Rs 10 lakh, a penalty of 25 per cent will be levied.After the scheme closes, the Income Tax Department will go ahead with tax demand and pursue legal course, including arbitration, sources said. The government had asked the I-T Department not to take any coercive action during the time the scheme is open.
The government, in the Budget 2016-17, had announced a scheme to settle the retrospective tax disputes by waiving interest and penalty if the companies paid up the principal tax amount.
The Direct Tax Dispute Resolution Scheme, introduced on June 1, seeks to address the issue of pending litigation before the CIT Appeals.
According to the I-T department data, there were 73,402 appeals with tax effect above Rs 10 lakh and 1,85,858 appeals with tax effect below Rs 10 lakh which are pending before CIT Appeals as on February 29. Thus, 2,59,260 appellants are eligible for the benefit of this scheme.