Finance Minister Nirmala Sitharaman, with an aim to eliminate the anxiety of honest taxpayers, particularly the senior citizens involved in disputed cases, proposed to provide major relief by doing away with outstanding tax demands up to Rs 25,000 pertaining to 2009 to 2010 and up to Rs 10,000 from 2010 to 2015.
Expressing concern over considerable number of pending disputed cases even dating back to 1962, she asserted it will help drastically mitigate the backlog of disputed tax cases and benefit about a crore tax payers.
Sitharaman stated, “In line with our government’s vision to improve ease of living and ease of doing business, I wish to improve tax payer services. There are a large number of petty, non-verified, non-reconciled, or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest tax payers and hindering refunds of subsequent years.”
The taxpayers are liable to pay disputed tax, a part of income tax including cess and surcharge, under the Income-tax Act of 1961 in a financial or assessment year. To address the issue, the Centre launched the tax dispute resolution scheme – Vivad Se Vishwas 2020 under which the taxpayers disburse the disputed tax amount sans interest and penalty.
Certified Financial Planner and Beekay Taxation & Investment LLP partner Anupama Bhargava hailed the decision as “a large number of tax payers stuck with such unresolved and disputed tax demands” will get relief.
