<p>The revenue-starved Centre is awaiting a windfall of close to Rs 3 lakh crore before March 31 from the one-time direct tax amnesty scheme announced in the Union Budget last month.</p>.<p>The bill to this effect will be one of the first to be passed by Parliament when it re-assembles for the second part of the Budget Session on Monday.</p>.<p>Bank officials have been asked to complete the groundwork. Finance Minister Nirmala Sitharaman may ask them to put posters and hoardings and begin vigorous communications with tax assessees once the bill gets Parliament’s approval.</p>.<p>There is Rs 9.5 lakh crore locked in direct tax dispute cases for which the amnesty scheme — Vivad se Vishwas — will be open till June 30. If the Centre is able to collect above Rs 2.5 lakh crore, it will take care of the tax revenue shortfall in the financial year ending March 31. The tax collection is likely to fall short of its estimate by Rs 2.5 lakh crore or 1.2% of GDP in 2019-20.</p>.<p>“In this financial year alone, the target is to collect over Rs 2.5 lakh crore. That will take care of a part of the revenue-to-expenditure gap. Tax officials have begun identifying cases involved in disputes. Once the bill is passed, communication will be established with assessees,” an official told DH.</p>.<p>The amnesty scheme will remain open till June 30 from the day the bill is passed by Parliament. But it will have a small window of 20-25 days till March 31 during which the taxpayer will have to pay only disputed taxes, with a complete waiver of interest and penalty. Those who avail themselves of Vivad se Vishwas scheme after March 31, 2020, will have to pay the amount of disputed tax plus 10%ofdisputedtax.</p>.<p>A chunk of the revenue is expected from the Mumbai zone, which contributes more than a third to the tax kitty. Many big corporates and public sector enterprises are locked in tax disputes. The official said no amnesty scheme in India has been so friendly to those who want to get away with their past dues. So, even if the deadline is too tight for the scheme, we are confident it will be successful, he said.</p>.<p>Taxpayers in whose cases appeals are pending at any level can benefit from this scheme. But it will not be available in cases where the prosecution has been instituted. Also, any undisclosed income from a source or asset outside India will not fall under the ambit of the scheme, the official said.</p>
<p>The revenue-starved Centre is awaiting a windfall of close to Rs 3 lakh crore before March 31 from the one-time direct tax amnesty scheme announced in the Union Budget last month.</p>.<p>The bill to this effect will be one of the first to be passed by Parliament when it re-assembles for the second part of the Budget Session on Monday.</p>.<p>Bank officials have been asked to complete the groundwork. Finance Minister Nirmala Sitharaman may ask them to put posters and hoardings and begin vigorous communications with tax assessees once the bill gets Parliament’s approval.</p>.<p>There is Rs 9.5 lakh crore locked in direct tax dispute cases for which the amnesty scheme — Vivad se Vishwas — will be open till June 30. If the Centre is able to collect above Rs 2.5 lakh crore, it will take care of the tax revenue shortfall in the financial year ending March 31. The tax collection is likely to fall short of its estimate by Rs 2.5 lakh crore or 1.2% of GDP in 2019-20.</p>.<p>“In this financial year alone, the target is to collect over Rs 2.5 lakh crore. That will take care of a part of the revenue-to-expenditure gap. Tax officials have begun identifying cases involved in disputes. Once the bill is passed, communication will be established with assessees,” an official told DH.</p>.<p>The amnesty scheme will remain open till June 30 from the day the bill is passed by Parliament. But it will have a small window of 20-25 days till March 31 during which the taxpayer will have to pay only disputed taxes, with a complete waiver of interest and penalty. Those who avail themselves of Vivad se Vishwas scheme after March 31, 2020, will have to pay the amount of disputed tax plus 10%ofdisputedtax.</p>.<p>A chunk of the revenue is expected from the Mumbai zone, which contributes more than a third to the tax kitty. Many big corporates and public sector enterprises are locked in tax disputes. The official said no amnesty scheme in India has been so friendly to those who want to get away with their past dues. So, even if the deadline is too tight for the scheme, we are confident it will be successful, he said.</p>.<p>Taxpayers in whose cases appeals are pending at any level can benefit from this scheme. But it will not be available in cases where the prosecution has been instituted. Also, any undisclosed income from a source or asset outside India will not fall under the ambit of the scheme, the official said.</p>
