The Direct Tax Dispute Resolution Scheme, 2016, The (Scheme) was introduced with effect from 01.06.2016. The primary aim is to reduce tax payer grievance and uncertainly caused due to long pending litigation before the Commissioner Income Tax (Appeals). Whereas, litigation before CIT (A) is disputed chronologically and is dependent on tax effect, the Scheme provides an outer limit of 120 days for resolution of the pending matters. Practically, this period would be much shorter.

2. The Scheme provides for further relief in the following ways:

(i) Tax payable would include tax & interest till the date of assessment. Interest accrued thereafter would not form part of tax payable.

(ii) If and disputed tax is below Rs. 10 lakhs. penalty would stand waived on payment of tax & interest.

(iii) Where the disputed tax is more than Rs. 10 lakhs, penalty of 75% would stand waived on payment of tax, interest and 25% of penalty levied/leviable.

(iv) In the case of a penalty appeal, the same can be resolved on payment of 25% provided the tax and all interest due have been paid.

(v) Immunity from prosecution on the disputed tax would be available.

3. The Scheme, thus, provides a time bound process to resolve pending litigation without any uncertainty of the amount payable, which has been kept at that minimum. You may like to approach your Pr. Commissioner of Income Tax/Commissioner of Income Tax and Commissioner of Income Tax (Appeal) to discuss the benefits of the scheme as applicable in your case.