Taxpayers can file dispute settlement requests till end of September
The Central Board of Direct Taxes (CBDT) on Tuesday gave time till September end for tax payers to file applications for settlement of tax disputes before the Interim Boards of Settlement set up last month.
These Interim Boards were set up to decide on applications that were pending at the four-decade old Settlement Commission which was closed down with effect from 1 February this year.
When the government announced the winding up of the Commission earlier this year, it had said that no new applications can be filed from 1 February. The winding up of the Settlement Commission was announced in view of a new tax dispute settlement scheme offered in the union budget this year to small tax payers.
CBDT said that the decision to give extra time till end of September to file applications before the Interim Boards were given based on representations received from a number of tax payers. The tax authority said that many tax payers said they were in in advanced stages of filing their applications before the Settlement Commission as on 1 February. Also, some taxpayers have approached High Courts requesting that their applications for settlement may be accepted and have secured relief. This, CBDT said, has resulted in uncertainty and litigation.
CBDT said that the relief will cover tax payers eligible to file settlement application on 31 January this year for the relevant assessment years. They should have all assessment proceedings pending as on the date of filing the request. These applications will be dealt with by the Interim Board as pending applications, the tax authority said.
Taxpayers who have filed such applications cannot withdraw them. Legislative amendments will be made in this regard.
The union budget had announced the winding up of the Settlement Commission and creation of a new dispute resolution system under a committee. This would be available to assessees with taxable income upto ₹50 lakh in cases where disputed income is upto ₹10 lakh.
Never miss a story! Stay connected and informed with Mint.
our App Now!!
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here