This bill is Inspired by the success of the SabkaVishwas Scheme which reduced several disputes.
Its objective is to collect taxes and reduce litigation. A complete waiver of interest and penalty of the taxpayers is being offered under this scheme, who pay their taxes, in dispute, on or before March 31, 2020.
Who is eligible to opt for the scheme
It is applicable to all appeals and petitions filed by the income tax department, or the taxpayers, which are pending with the following forums:
- Commissioner of Income-tax Appeals
- Income-tax Appellate Tribunal
- High Court; or
- Supreme Court
Further, it is also applicable to the following cases where, as on January 31, 2020:
- The time limit for filing an appeal has not expired.
- Cases are pending before DRP or where DRP directions have been passed but the final assessment order is awaited;
- Revised petitions are pending – the Commissioner of Income-tax
- Cases of SEARCH – the demand in dispute is less than Rs 5 crore
*Dispute Resolution Panel
Appeals filed by the taxpayer
| Particulars | Amount payable upto31 March 2020 | The amount payable after the 31 March 2020 |
| Search cases | 125 % of disputed tax* | 135 %of disputed tax* |
| Other than search cases | 100 %of disputed tax* | 110 %of disputed tax* |
| Cases relating to only interest, penalty or levy | 25 %of disputed interest, penalty or fee | 30 %of disputed interest, penalty or fee |
Appeals filed by Department or Department has lost an issue
| Particulars | Amount payable upto31 March 2020 | The amount payable after the 31 March 2020 |
| Search cases | 62.5 %of disputed tax* | 67.5 %of disputed tax* |
| Other than search cases | 50 %of disputed tax* | 55 %of disputed tax* |
| Cases relating to interest, penalty or levy only | 12.5 %of disputed interest, penalty or fee | 15 %of disputed interest, penalty or fee |
* Interest and penalty waived
Clarified that if the taxpayer has already paid the disputed amount which is more than the amount payable under the scheme, the taxpayer shall be entitled to refund but without interest on the refund due.
The process to settle the tax dispute under the scheme:
The tax dispute resolution scheme, an individual taxpayer has to complete the following steps to avail the benefit of complete waiver of interest and penalty:
Step 1: The Taxpayer has to file a declaration in a specified Form to the authority to initiate the resolution of pending direct tax disputes.
With the declaration, the taxpayer has furnished the details in a specified format for waiving his right to pursue any other remedy/claim.
Step 2: Based on the declaration within 15 days the authority will determine the amount payable by the Applicant and grant a certificate, containing particulars of the amount payable.
If the applicant will not be able to file an appeal in case it does not agree to the amount determined by the designated authority
Step 3: The Applicant made the payment within the next 15 days and submitted with the proof of withdrawal of the appeal.
Step 4: The authority will pass an order, in which it shall be conclusive as to the matters stated therein.
