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News INCOME TAX

  • Feb 06, 2020
  • Note ban cases to add over Rs 2.5 lakh crore to Income Tax disputes

    Amounts involved in personal income tax (PIT) disputes could jump by a massive Rs 2.5-3 lakh crore in the current financial year from close to Rs 4 lakh crore at the end of FY19 for the sole reason of post-demonetsation cash deposits in banks by about 90,000 individuals that have to date remained unexplained by them to the taxman’s satisfaction. That could present a chance for the government to net a tidy sum in FY20 if sections of these recalcitrant individuals opt to use the new Vivad Se Vishwas scheme to avoid much higher tax liabilities that could potentially befall on them in the normal course of dispute resolution involving tax adjudicators and courts.

    According to a senior official, having exhausted the procedures involved before dispute stage like sending e-mails and SMS messages to these individuals to elicit their responses and explanations within specified periods, the cases of the above 90,000 people have started getting classified as ‘disputes’ and by the end of February, most of them will be termed so. This will make these individuals eligible to use the Vivad Se Vishwas scheme by paying 75% of the cash deposited by March 31, 2020 to nullify chances of any further liabilities that could otherwise arise from holding the unaccounted cash.