Assessment of Tax Demand and Refund for all Taxpayers Will be Completed by 31 August

Assessment of Tax Demand and Refund for all Taxpayers Will be Completed by 31 August

The Central Board of Direct Taxes (CBDT) chairman PC Modi has directed the tax authorities to complete the tax assessment of all income taxpayers by the end of August. Apart from this, the monthly target for disposal of appeals has also been fixed for all field officers. Significantly, there is a decrease in tax collection and due to this, it is finding it difficult to achieve the revenue targets of this business year.

In a letter to the Principal Chief Commissioners of the tax department, Modi said that many taxpayers are waiting to apply for the trust scheme with controversy. But they are also waiting for the right demand information from the tax department. The CBDT chief wrote the letter on 9 July.

What is the dispute from the trust scheme?

Taxpayers desirous of resolving the dispute under the Dispute by Confidence Scheme will be exempt from interest and penalty for depositing the full amount of tax by 31 December. Under this scheme, there is a target of disposal of 4.83 lakh direct tax cases worth Rs 9.32 lakh crore. These cases are pending in various appellate forums such as Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), High Courts and Supreme Courts.

Appeals will be disposed of by sending information via e-filing portal or e-mail

The CBDT chief has also set a monthly target for disposal of pending appeals for officers. Officers have been asked to dispose of appeals by sending information through the e-filing portal or only through e-mail. In a letter dated July 9, the CBDT chief said that the board wants that the work related to a tax demand of taxpayers falling under the trust-in-trust scheme and calculation of tax payments or refunds should be done on a priority basis.

Disputes under the trust scheme will be given immediate attention

In the letter, the tax authorities have been asked to look into the applications under the trust scheme out of the dispute. The CBDT chief said that whether the application has been received or not received under this scheme, all assessing officers will have to expedite the calculation of tax payments or tax refunds of the income taxpayers under their jurisdiction. The CBDT chief said that this task is to be done for all income taxpayers, whether they want to opt for the scheme or not.

This exercise of the department will not cause problems in the last minute

This exercise of the tax department will not cause any problem in the last minute. Assessing officers have to complete this process by 31 August 2020. The deadline for settlement of tax disputes under the Dispute to Confidence Scheme is December 31, 2020.

The amount of tax caught in the dispute is equal to 71% of the budget target of direct tax collection

This amount of disputed tax constitutes 71 per cent of the budget target of Rs 13.19 lakh crore for direct tax collection for 2020-21. Out of the total budget target of direct tax collection, income tax collection target is 6.38 lakh crore rupees and corporate tax collection target is 6.81 lakh crore rupees. The total direct tax collection stood at Rs 12.33 lakh crore in 2019-20. It was Rs 12.97 lakh crore in 2018-19.

Instructions to Income Tax Commissioners to resolve 80 appeals every month

According to sources, the CBDT chief has also asked each income tax commissioner to resolve at least 80 appeals every month. They have also been asked to immediately begin the work of resolving all pending appeals filed by 31 March 2016.