(Image source from: economictimes.indiatimes.com)

The Finance Minister of India Nirmala Sitharaman has met the industry representatives on the direct tax dispute resolution scheme that has been proposed and which provides opportunities to the taxpayers to pay the outstanding taxes and get a waiver of interest and penalty.

The introduction of Direct Tax Vivad se Vishwas Bill,2020 has been made in the Lok Sabha during the last week by the government with over Rs 9 Lakh crore worth direct taxes locked up in litigation.

The scheme would be get notified and the rules would be framed once it has been passed by the Parliament. According to a source, the suggestions regarding the scheme have been made by the industry associations, during the meeting.

DK Aggarwal who is the President of PHD Chamber of Commerce has said in a statement that the extension regarding the last date of the scheme should be done and the date should be extended til 30th of the month April in the year 2020.2.11

He added saying that the scheme would show the beneficial effects to the taxpayers and it can also generate more than Rs 2 Lakh crore for the government in the mere future if it is broadened and the exclusions are minimum in the scheme.

Under the scheme that has been proposed, the taxpayers who are willing to settle the dispute would be allowed a complete waiver of interest and the penalty if the entire amount of tax in dispute would be paid by the individual up to 31st of the month of March in the year 2020 following which additional dispute tax of 10 per cent shall have top be paid over and above the tax liability.

It has also been mentioned that where the tax arrears that are related to disputed interest or penalty only, then the payment of the 25 per cent of disputed penalty/ interest would have to be done only if the payment has been made by 31st of March, 2020 beyond which the the same thing would be enhanced to 30 per cent.

The scheme is said to be remained opened until the month of June, 30th June 2020.

Availing the scheme cannot be done in case where the institution of the prosecution has been done or where the tax arrears related to the foreign income or sets that have been not disclosed.

By Shrithika Kushangi