For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Dispute Resolution Scheme: 5 Tax-Friendly Rules

|

The Union Finance Minister Shri Arun Jaitley said that litigation is a scourge for tax friendly regime and creates an environment of distrust.

Litigation also leads to increasing the compliance cost of the tax payers and administrative cost for the Government.

As of now, there are 3 lakh tax cases pending with the 1st Appellate Authority with disputed amount being 5.5 lakh crores.

Dispute Resolution Scheme: 5 Tax-Friendly Rules
 

In order to reduce this number new dispute Resolution Scheme (DRS) is launched.

Following are highlights of dispute resolution scheme:

  1. A taxpayer who has an appeal pending as of today before the Commissioner (Appeals) can settle his case by paying the disputed tax and interest up to the date of assessment.
  2. No penalty in respect of Income-tax cases with disputed tax up to Rs. 10 lakh will be levied.
  3. Cases with disputed tax exceeding Rs. 10 lakhs will be subjected to only 25% of the minimum of the imposable penalty for both direct and indirect taxes.
  4. Any pending appeal against a penalty order can also be settled by paying 25% of the minimum of the imposable penalty.
  5. Certain categories of persons including those who are charged with criminal offences under specific Acts are proposed to be barred from availing this scheme.

Other tax regimes

He proposed one-time scheme of Dispute Resolution for past cases ongoing under retrospective amendment.

One can settle the case by paying only the tax arrears in which case liability of the interest and penalty shall be waived. This is subject to agreeing to withdraw any pending case lying in any Court or Tribunal or any proceeding for arbitration, mediation etc. under BIPA.

The penalty rates will now be 50% of tax in case of underreporting of income and 200% of the tax where there is misreporting of facts. Remission of penalty is also proposed where taxes are paid and appeal is not filed.

 

Quantification of disallowance of expenditure relatable to exempt income in terms of Section 14A of the Income Tax Act is another issue led to number of disputes.

Source: PIB

Story first published: Monday, February 29, 2016, 13:59 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more