More Stories

Informist, Tuesday, Jul 23, 2024

 

--To deploy more officers to hear tax appeals

--Propose Vivad se Vishwas scheme 2024 for income-tax dispute

--To expand scope of safe harbour rules to cut litigation 
 

NEW DELHI – The Budget today proposed a Vivad se Vishwas Scheme to settle some of the income tax disputes pending in appeal. 

 

The Vivad se Vishwas scheme was first announced in the Budget of 2020 to reduce the number of ongoing legal disputes in direct taxes. The scheme provided a one-time opportunity to settle direct tax litigation disputes pending in the courts without paying any interest or penalty. 

 

Last year, the government introduced another dispute resolution scheme to resolve contractual disputes. The scheme was aimed at bringing quick settlement to certain contractual disputes in which the government or its agencies is a litigant.

 

Presenting the Budget today, Finance Minister Nirmala Sitharaman said that the government plans to deploy more officers to hear and dispose backlog of first appeals, especially those with large tax effects. Further, the government also proposed to increase monetary limits for filing appeals related to direct taxes, excise and service tax in tax tribunals, high courts and the Supreme Court to 6 mln rupees, 20 mln rupees and 50 mln rupees respectively.

 

The finance minister said that the government will also expand the scope of safe harbour rules and make them more attractive to reduce litigation and provide certainty in international taxation. Safe harbour rules are a set of rules or conditions which relieve taxpayers from certain obligation, which are imposed on the taxpayers by provisions of Transfer Pricing Regulations.

 

"We will also streamline the transfer pricing assessment procedure," the finance minister said.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.