Feb 06, 2020
Tax settlement scheme not open to launderers
The new direct tax dispute settlement scheme will not cover cases related to undisclosed overseas assets initiated on the basis of information from another country. Neither will it apply to prosecutions under the Prevention of Money Laundering Act (PMLA), the Benami Transactions (Prohibition) Act and the income tax Act.
Those applying for the scheme can’t appeal against the decision of the tax authorities and liability computations will be final.
Finance minister Nirmala Sitharaman introduced the Direct Tax Vivad Se Vishwas Bill, 2020, in the Lok Sabha on Wednesday, which she had announced during her February 1 budget speech.
The legislation is aimed at resolving disputed tax cases involving Rs 9.32 lakh crore that has been stuck for more than a year through 483,000 cases pending in various courts.
“This Bill emphasises on trust building,” the finance minister said, adding that the scheme will reduce needless litigation expenditure for the government and taxpayers.