How to taxpayers take benefit of Dispute to Confidence Scheme

How to taxpayers take benefit of Dispute to Confidence Scheme

Millions of tax cases discovered, in legal disputes, have not only led taxpayers to mental tension for years but also the government's revenue of crores rupees is not recoverable. In a speedy manner of such cases, the Government has submitted a proposal for a Dispute to Confidence Scheme in the budget 2020-21. It has given an opportunity to the taxpayers who are suffering from legal mails to settle the dispute with minor payments by applying within a definite period.

If a taxpayer makes an application under the scheme before 31 March 2020, there will be no question related to the dispute. The income tax department will issue a certificate to resolve the matter only by taking the amount stuck in the dispute. Further, taxpayers who apply between April 1 and 30 June 2020 will have to pay a 10 percent additional fee along with the disputed amount. Taxpayers who have filed a suit on the amount of fee, interest, or fine can get rid of it by paying a 25 percent disputed fee or 30 percent disputed fee by 30 June till 31 March.

What you have to do for it: 

Submit all necessary information in the confidence declaration form from the taxpayer dispute to the forum. The certificate will be issued within 15 days from the income tax department, which will disclose the total dues under the scheme. The taxpayer will have to deposit the amount mentioned within 15 days of receipt of the certificate. The information has to be shared with the Income Tax department by filling it in a fixed form. Thereafter, an order relating to payment to the taxpayer will be issued. The order will be completely decisive and cannot be challenged in any court in the country or abroad. Though some taxpayers will not get relief under the scheme, let's know about them.

The Government has clarified in the scheme that the income which has not been disclosed or the property which is located outside India will not provide any relief in the ongoing tax disputes. Further, in cases where the Forum or court has already heard the decision for a definite assessment year. They will also not be given the benefit of the scheme. Also, those against whom custody or arrest orders have been issued in cases like smuggling or any order has been issued in the transfer of Benami property, money laundering, drugs, or illegal cases will also not be included under the scheme. According to an estimate, an amount of Rs 9.41 lakh crore has been stuck in about 4.83 lakh dispute cases in the country.

Image credit: business-standard

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