Budget 2023 Tax Dispute: 10.6 trillion income tax money stuck in the law! Will the 2023 budget be rescued? – mssewb.org

Budget 2023 Tax Dispute:A huge amount of money is stuck in the center due to complications related to income tax. To say that the central government is in a bad state in tax related cases. Several attempts have been made by the Center to resolve the issue but to no avail.

The result is painful not only for the Center but also for the tax payers. Because both parties have to take legal action.

According to the data, 5.6% of India’s total GDP is trapped in this legal complex. The total amount of money stuck in tax complications at the end of 2020-21 is Rs 10.6 trillion.

As a result, for the overall development of the country and to bring transparency in tax matters, this complication needs to be resolved soon. And there is an expectation that whether the 2023 budget can show an important direction in that regard.

It is not that the Center did not understand the need. The Center has realized this and has taken several steps. 1,89,000 indirect tax related cases have been settled under ‘Sabka Vishvas Scheme’. Under ‘Vivad se Vishvas Scheme (2020)’ 1,29,000 tax payers can be resolved. It resulted in the settlement of INR 980 billion tax complexities.

The ‘faceless assessment scheme (2019)’ has been introduced by the Center to quickly resolve tax related complications. As a result, complexities can be resolved quickly and transparently.

income tax dispute

Can Budget 2023 rescue tax money stuck in legal entanglement?—symbolic photo. (Photo Courtesy—Pixabay)

Faceless Dispute Resolution Scheme (DRS) has been introduced in the last 2 budgets. Mainly for small taxpayers. ‘Board for Advance Rulings (BAR)’ has been replaced by ‘Authority for Advance Rulings (AAR)’. So that the case is settled quickly.

It is not only the economic growth of the country that is stuck if the tax money is not recovered. It is a problem for both taxpayers and the Centre.

That is why the bar made the bench in September 2021. But due to complications in the initiation process, this bench is yet to be fully operational.

Even, it is not possible if a taxpayer wants to withdraw his application from AAR. Hence, in view of all these, the Bar Benches need to be introduced. Center understands this. The number of members on the bar bench should be increased. So that tax related cases are resolved quickly.

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