Compute tax demand for all assessees by Aug 31, get rid of pending appeals: CBDT chief to taxmen

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With tepid collections proving to be a problem in assembly tax income targets, CBDT Chairman P.C. Mody has set month-to-month targets for area formations for disposing of appeals and requested them to compute taxes for all assesses by August-end.

In a letter to Principal Chief Commissioners of Income Tax, Mr. Mody stated that many taxpayers are ready to file purposes below ‘Vivad Se Vishwas’ scheme, however they’re additionally ready for proper demand to be intimated to them.

The Central Board of Direct Taxes (CBDT) chief additionally set a month-to-month goal of disposing of pending appeals by sending communication by way of the e-filing portal and or by way of emails solely.

“… board desires that all the work … of cleaning up of the tax demand and calculating the tax payable or refundable in respect of all eligible assessees under Vivad Se Vishwas scheme is taken up on priority,” the CBDT chief wrote in a letter dated July 9.

Asking taxmen to right away attend to the purposes below the Vivad Se Vishwas scheme, the CBDT chief stated “whether application under the scheme is received or not, all the assessing officers… shall compute the tax payable by or refundable to all the eligible assessees in their jurisdiction”.

This train should be executed for all of the assessees in case they want to go for the scheme and to keep away from final minute rush and issues. The assessing officers (AOs) have to finish the method by August 31, 2020.

The deadline for settling tax disputes below the Vivad se Vishwas scheme ends on December 31, 2020. Under the scheme, taxpayers prepared to settle disputes shall be allowed an entire waiver of curiosity and penalty in the event that they pay the complete quantity of tax in dispute by December 31 this 12 months.

The scheme goals to settle and see the finalisation of 4.83 lakh direct tax instances with a income price Rs 9.32 lakh crore locked up in litigation, pending at varied appellate boards such because the commissioner (appeals), ITATs, excessive courts and the Supreme Court.

This quantity accounts for about 71% of the budgeted direct tax assortment of ₹ 13.19 lakh crore for the 2020-21 fiscal. Of this, earnings tax assortment goal is pegged at ₹ 6.38 lakh crore and company tax at ₹ 6.81 lakh crore.

The precise gross direct tax assortment in 2019-20 and 2018-19 stood at ₹ 12.33 lakh crore and ₹ 12.97 lakh crore, respectively.

With the financial system slowing down and the coronavirus-induced lockdown taking toll on enterprise actions, the primary instalment of advance tax collections tanked by over 76%, dragging the online direct tax collections down by 32.3% for the April-June quarter.

Corporate advance tax dropped by practically 80% and the advance fee for private earnings tax fell by round 64%.

Sources stated the CBDT high boss has additionally requested every Commissioner of Income Tax to get rid of a minimum of 80 appeals per thirty days, and instantly take up for disposal of all pending appeals filed on or earlier than March 31, 2016.

“It is seen that a large number of appeals are pending for a considerable time mainly because of the recent lockdown and consequential partial or full closure of income tax offices throughout the country,” the letter written by Mr. Mody stated.

“The disposal by each officer will be monitored online by an MIS (management information system) being issued separately. While issuing the notices or communications to the taxpayers, the officers should be sensitised to appreciate the problems relating to compliance being faced by the taxpayers because of the coronavirus pandemic, its impact on the local area, and act accordingly,” the CBDT letter stated.

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