Direct Tax Dispute Resolution Scheme, 2016 extended

The government has extended the time period of the Direct Tax Dispute Resolution Scheme, 2016. Now the scheme can be availed up to 31st December, 2016. This move is aimed at reducing the pending litigation.

Background:

The Direct Tax Dispute Resolution Scheme, 2016 has come into force from 1st June, 2016.

• The Scheme is available to the cases pending with the first appellate authority as on 29th February, 2016, subject to certain conditions.
• It also extends to the cases pending litigation owing to retrospective amendment at different levels.

Under the Scheme, if the amount of disputed tax is:

• Up to Rs.10 lakh, complete waiver from levy of penalty and from initiation of prosecution is provided on payment of assessed tax along with the interest.
• More than Rs.10 lakh, the declarant is required to pay only 25% of the minimum penalty leviable along with the due tax and interest.

Also, in respect of penalty appeals, the declarant shall get waiver of the 75% of the penalty levied and immunity from prosecution. In respect of specified tax, the declarant gets complete waiver of/immunity from levy of penalty and immunity from prosecution.