Nirmala Sitharaman holds meeting with industry on direct tax dispute resolution scheme

New Delhi: Finance Minister Nirmala Sitharaman on Monday met industry representatives on the proposed direct tax dispute resolution scheme that provides opportunity to taxpayers to pay outstanding taxes and get waiver of interest and penalty.

With over Rs 9 lakh crore worth direct taxes locked up in litigation, the government last week introduced 'Direct Tax Vivad se Vishwas Bill, 2020' in the Lok Sabha.

Once passed by Parliament, the scheme would be notified, and rules would be framed. "During the meeting, industry associations gave their suggestions for the scheme," a source said.

Separately PHD Chamber of Commerce President D K Aggarwal in a statement said that the last date for the scheme should be extended by a month till April 30, 2020.

The scheme "will benefit many taxpayers and can generate more than Rs 2 Lakh crore for the government in the coming times if it is broadened and exclusions are minimum under this scheme," he said.

Under the proposed scheme, taxpayers willing to settle disputes shall be allowed a complete waiver of interest and penalty if they pay the entire amount of tax in dispute up to March 31, 2020, after which 10 per cent additional disputed tax shall have to be paid over and above the tax liability.