India Taxpayer - India's Independent grassroots movement for better services and lower taxes

+91 422 254 0710

India Tax Payer, No.81, West Venkatasamy Road,R S Puram, Coimbatore - 641 002,Tamilnadu.

India Tax Payer Logo

Merchandise

Forum

Benefits

Resources

News

Event

About Us

  • Home
  • ABOUT US
  • BENEFITS
  • RESOURCES
  • NEWS
  • FORUM
  • CONTACT US
  • Home
  • ABOUT US
  • BENEFITS
  • RESOURCES
  • NEWS
  • FORUM
  • CONTACT US

News & Events

Budget 2020: Tax settlement scheme not open to launderers


The new direct tax dispute settlement scheme will not cover cases related to undisclosed overseas assets initiated on the basis of information from another country. Neither will it apply to prosecutions under the Prevention of Money Laundering Act (PMLA), the Benami Transactions (Prohibition) Act and the income tax Act. Those applying for the scheme can’t appeal against the decision of the tax authorities and liability computations will be final.


Finance minister Nirmala Sitharaman introduced the Direct Tax Vivad Se Vishwas Bill, 2020, in the Lok Sabha on Wednesday, which she had announced during her February 1 budget speech.

The legislation is aimed at resolving disputed tax cases involving Rs 9.32 lakh crore that has been stuck for more than a year through 483,000 cases pending in various courts.

“This Bill emphasises on trust building,” the finance minister said, adding that the scheme will reduce needless litigation expenditure for the government and taxpayers.

Sitharaman said the government’s tax claim will remain intact and “this structured and formula-based approach will help the taxpayer get relief without any discretion and the government to get the money”.

Aside from the legislation cited above, the framework won’t cover prosecutions under the Indian Penal Code, the Unlawful Activities (Prevention) Act, 1967, the Narcotic Drugs and Psychotropic Substances Act, 1985, and the Prevention of Corruption Act, 1988.

The Central Board of Direct Taxes (CBDT) has asked its offices to provide data on pending appeals in high courts. Revenue secretary Ajay Bhushan Pandey held a meeting with senior officials from CBDT and department of revenue for preparatory work on the scheme.

Income tax officers will be asked to convince taxpayers to opt for resolution under the scheme and will be rated on the success in this, said a person aware of the matter.

Taxpayers have up to March 31 to opt for the scheme. The tax authorities have to declare the amount that the entity or person has to pay within 15 days. They have to pay the amount within 15 days of being told how much they owe. Those who opt for the scheme after the date will have to pay an additional 10%. Sitharaman said the scheme will not be open ended. Those opting for the scheme will have to withdraw international arbitration, conciliation or mediation cases and provide proof to the department. Cases in the Supreme Court, high courts or Income Tax Appellate Tribunal (ITAT) will also have to be withdrawn. They will also have to waive their right to revive cases.

Referred from economic times, dated 06 Feb 2020




Add Comment
Comments
No Comments!
Miranda Hazard Footer

Subscribe for newsletter & updates





Latest News

Board Of Director

Non-resident expats’ salary paid in India won’t face tax

The Authority of Advance Rulings (AAR) has held that the salary income of a nonresident individual for services rendered overseas cannot be taxed in India, even when such salary is paid into a bank account in India. It is not the country of origin, but the number of days’ stay in India, which determine whether a person will be a resident or non-resident for tax purposes. Unlike a tribunal or court order, a ruling by AAR, a quasi-judicial body, does not set a precedent. But it does have persuasive value and is well-considered. Thus, the ruling may benefit expat workers, in particular the over one lakh Indian workers who work in the US, largely on H1B visas.

Contact us


We'd love to hear from you!










By submitting your enquiry you agree to our Terms and Privacy Policy.