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'Resolve your tax dispute': IT department

Department to send emails to 2.59 lakh taxpayers asking them to solve the tax disputes till December 31

Policy Pulse
Publish Date: Aug 28 2016 7:48PM | Updated Date: Aug 28 2016 7:48PM

'Resolve your tax dispute': IT department

The IT department will soon write to over 2.59 lakh taxpayers across the country asking them to avail the one-time dispute resolution scheme to settle their cases.

Through the mail the department would also asked to cut down on communication time as the Central Board of Direct Taxes (CBDT) will use email to communicate with the appellants.
As per IT department data, there were 73,402 appeals with tax effect above Rs 10 lakh and 1,85,858 appeals with tax effect below Rs 10 lakh which are pending before CIT (Appeal) as on February 29. Thus, 2,59,260 appellants are eligible for the benefit of this scheme.
"We have estimated that each Commissioner of IT (Appeal) have about 300-400 litigations pending before them. We will send emails to these assessees informing the benefits of the dispute resolution scheme," an official said.
The Direct Tax Dispute Resolution Scheme, introduced from June 1, seeks to address the issue of pending litigation before Commissioner of IT (Appeal). The scheme is open till December 31.
"The publicity drive will not be as massive as the IDS. Since we know who our target assessees are, we will send them pamphlets and emails. We will also paste some pamphlets outside the CIT (Appeals) office," the official added.
Armed with a Rs 100-crore budget for advertisement of Income Disclosure Scheme (IDS) and Disputes Resolution Scheme, the tax department will now launch a publicity drive for entities which are locked in a litigation.
As per the scheme, a taxpayer who has an appeal pending before the CIT (Appeals) can settle his/her case by paying the disputed tax and interest up to the date of assessment. No penalty in respect of cases with disputed tax up to Rs 10 lakh will be levied.
For cases exceeding Rs 10 lakh, 25 per cent of penalty would be levied and any pending appeal against a penalty order can also be settled by paying 25 per cent of the minimum of the imposable penalty.
Besides, the CBDT will soon come out with over two dozen FAQs based on the queries it has received from various stakeholders, including chartered accountants and industry chambers.