Urge Taxpayers To Avail Direct Tax Dispute Resolution Scheme, Says CBDT Chairman
The government’s new direct tax scheme that allows taxpayers to clear pending dues without paying interest and penalty should be used to resolve disputes and reduce litigation, according to Central Board of Direct Taxes Chairman Pramod Mody.
The ‘Vivad se Vishwas’ scheme is yet to be notified by the government.
There are about 4.8 lakh pending direct tax cases at different courts that the government is trying to resolve, Mody said. “Many of the issues are such the department feels they have a case, assessee feels they have a case and many of them are fairly old,” he said, adding here is an opportunity which can be availed by March 31.
The details of the dispute resolution scheme, according to Mody, are as follows:
- Those taxpayers availing the scheme by March 31, will just have to pay the tax amount due. If taxpayers are not able to avail the scheme by March 31, they will have to pay an additional 10 percent and opt for the scheme by June 30.
- In case where only interest and penalty is due, 25 percent will have to be paid by March 31, after which the taxpayer will have to pay 30 percent.
In 2016, the Narendra Modi government had announced a similar direct tax dispute resolution scheme but it could garner only Rs 1,200 crore for the exchequer.
The government wants to phase out all exemptions and deductions that income taxpayers get in a staggered manner, Mody said.
Only 10 percent of India’s 5.78 crore taxpayers avail exemptions of more than Rs 2 lakh, BloombergQuint had earlier reported.
“We have had this mindset because of the structure we have had...I think the time has come for a relook and revisit of the entire system and I think the younger people and people who have not got used to the deductions and exemptions will find it attractive to go for the lower rate,” he said. “We should let the young generation decide if they want to spend or save their money.”