The proceeds from the direct tax dispute resolution scheme, ‘Vivad se Vishwas’, will buoy the direct tax collection in the existing fiscal as it has yielded practically `95,000 crore in tax payable therefore far from 1.18 lakh disputes that opted for the program, Computer Mody, chairman of the Central Board of Direct Taxes (CBDT), told FE.
The final date of payment is March 31 but the quantum of tax accruing to the government would be lesser due to pre-payment of tax demand in earlier stages of litigation by taxpayers. “Essentially, what you have here is that nearly a fourth of disputes getting resolved which makes the scheme immensely successful,” Mody mentioned.
The scheme was launched in the final Budget with the aim to liquidate practically 5 lakh circumstances pending at unique forum. These circumstances involved practically `10 lakh crore in tax demand.
Mody mentioned that the info of monetary transaction readily available with the taxpayers now, which is supplied by the government on the revenue tax return filing portal, would allow and compel appropriate disclosure of taxable revenue. This, he added, is the explanation the division has set a 22% development target for tax collection in next monetary year. “Statistics apart, it is the ground level experience which also matters with respect to ease of compliance, certainty, and taxpayers’ experience vis-a-vis the department. The introduction of faceless assessment, appeal and penalty will be a game changer,” Mody mentioned.
In reality, these measures are yielding benefits as the direct tax collection this year till finish of January has narrowed the gap and is trailing the mop-up in the corresponding period final year by 6.7%. The price range estimate for direct taxes in FY22 stands at `11.08 lakh crore.
Referring to the proposed move of generating the tax tribunal (ITAT) faceless, Mody mentioned that it was component of the program to make the tax administration absolutely faceless, random and anonymised. “Right now what is happening is certain ITAT benches overloaded with work while some others are starved. it would expedite the disposal of appeals and bring in uniformity and transparency,” he added.
The Budget has also proposed abolition of the settlement commission though setting up and alternate dispute resolution committee for smaller sized taxpayers. “The concept was to produce a structure for smaller sized taxpayers which contribute to majority of tax disputes. Although alternate dispute resolution mechanism has been performed away for larger taxpayers, they continue to have the remedy of the usual appellate route.