Electronic income

Fin Min notifies formation of dispute resolution committee and small taxpayer scheme

The Ministry of Finance has notified the formation of a dispute resolution committee and an online dispute resolution system to enable faceless settlement of cases. This arrangement will be available to those assessed with a taxable inclination of up to ₹50 lakh and a disputed income of ₹10 lakh.

Two notifications have been issued to implement an announcement made in this year’s budget.

The committee

“The Center will establish a Dispute Resolution Committee for each region of the Principal Chief Commissioner of Income Tax for Dispute Resolution,” one of the notifications reads. The committee shall be composed of two retired officers of the Indian Revenue Service (Income Tax) and one serving officer not below the rank of Chief Commissioner of Income Tax or Commissioner of Income Tax. Income. They will be appointed for three years.

The committee may grant waiver of taxable penalty or immunity from prosecution or both, with respect to the order that is the subject of the resolution. This will be subject to two conditions – the fee has been paid in full and the applicant has cooperated with the committee. However, no immunity is granted when the proceedings for infringement have been instituted before the date of receipt of the request. In addition, an immunity will be withdrawn if that person fails to comply with any of the conditions on which the immunity was granted.

Electronic Dispute Resolution System

The Scheme Notice states that a person will not be required to appear personally or through an authorized representative in any proceeding before the committee or tax authority. However, the person being assessed may request a personal hearing.

The notification prescribes a period of six months to dispose of the request. No recourse or revision may be made against the order.

The tax authorities say that such a regime is necessary given the high amount of tax contributions, even from small taxpayers. On Tuesday, the ministry informed Rajya Sabha that more than ₹8.40 million in claims were pending with respect to individuals as of April 1.

Collection of arrears

In addition, the officials said that strategies and targets for collection of tax arrears are set out within the framework of the annual Central Action Plan document of the Central Board of Direct Taxes. Databases such as individual transaction records and those managed by other agencies such as the CRF-IND are made available to field units for the identification of assets to be recovered.

In addition, the Direct Tax Act Vivad se Vishwas (DTVsV) was enacted with the aim of reducing pending tax disputes, generating revenue in a timely manner and benefiting taxpayers by providing peace of mind. , certainty and cost savings due to the time and resources that would otherwise be spent on legal proceedings.

Published on

06 April 2022