Budget 2023 Can Bring Another Tax Proposal On The Lines Of Vivad Se Vishwas Scheme
To lessen the burden of litigation and improve revenue collection in the upcoming fiscal year, the government may introduce a further tax amnesty proposal in the Budget 2023 along the lines of the Vivad se Vishwas scheme.
According to sources, taxpayers who are involved in legal disputes and appeals may be required to pay the disputed amount a 10–20% penalty in order to settle the cases. If the situation is still being handled by the Commissioner of Income-Tax (Appeals), it may suggest amnesty with a 10% penalty on the amount of the contested tax. According to the sources, an amnesty with a penalty of 20% on the disputed tax amount is being considered for cases now before the Income Tax Appellate Tribunal (ITAT).
The scheme is crucial because it will help the government in generating income at a time when the nominal GDP is anticipated to decline and have an adverse impact on tax collection. Compared to the exceptional collections in this fiscal, tax revenue is anticipated to decline in the upcoming fiscal.
The earlier Vivad se Vishwas scheme had generated more than Rs 53,000 crore in revenue for the government. In addition to direct taxes, a similar plan might also be revealed for customs-related problems in the next Union Budget. According to sources cited in a media report, issues regarding classification, valuation, and exclusions may be covered by the CBIC's amnesty scheme
On the strength of strong tax collections, the government is anticipated to achieve its budget deficit target in the current fiscal. Up till January 10, the net direct tax collection increased by 19.55% to Rs 12.31 lakh crore. This represents 86.68% of the current fiscal year's budget estimates.