The Scheme was launched by the Finance Minister in her Budget speech on Feb 1 ,2020 .The scheme is in the direction of bringing tax dispute to an end and bringing the disputed money in various appellate forum in the mainstream of the economy .
What is scheme ?
The scheme aims in unlocking the disputed tax arrears which are pending against various appellate forum .The arrears of tax i.e INR 9.2 Lacs Crore can be bring in development of the nation .
The tax payer can pay the disputed tax by 31st March 2020 without paying any interest and penalty .
In case the tax payer is not able to pay by 31st March ,he can pay by 30th June but he ends up paying 10% more taxes .
Is this scheme applicable for interest and penalty amount under appeal ?
Yes, the scheme is applicable where there are arrears of penalty and interest as well .
In that case 25% of disputed interest or penalty or fees is payable by 31st March 2020 and beyond that but upto 30th June 2020 payable amount is 30 % .
Is there some eligibility criteria for the scheme ?
This scheme is applicable to the taxpayers who has any disputed arrears of tax ,interest and penalty and the same is pending for appeal in Commissioner Appeal ,Income Tax Appellate Tribunal or High Court or Supreme Court
Under what circumstances the scheme is not applicable ?
The circumstances in which scheme is not applicable is spelled as under –
• Assessment year for which prosecution has been initiated
• Undisclosed income or undisclosed assets outside India
• In case of assessment under search and seizure
• Order of detention under FEMA,IPC,unlawful and smuggling activities
What is the process of settlement of disputed arrears of tax ?
The taxpayer has to file a declaration, the form and the manner in which such has to be filed is yet to be notified .
The designated authority shall within 15 days of receiving the declaration will determine the tax , interest or penalty demand under this scheme and will issue a certificate containing particulars of the tax arrears and amount payable after such determination
The tax , interest and penalty arrears will be withdrawn from that date of issue of such certificate .
In how much time the taxpayer has to pay the arrears of demand ?
The taxpayer has to pay the arrears as determined by the designated authority within 15 days of receipt of the certificate and shall communicate about the payment to the designated authority .
The designate authority shall pass an order stating that the declarant has paid the amount .