News

Govt to move Supreme Court for bulk disposal of tax disputes

Govt to move Supreme Court for bulk disposal of tax disputes

About 70-80% of the direct tax disputes – nearly 5 lakh involving tax demands of Rs 9.5 lakh crore at last count and piling up – may get resolved in one stroke, as the government has decided to move the Supreme Court, pleading for definitive rulings on 20 issues identified by the tax department as being at the heart of these disputes, revenue secretary Ajay Bhushan Pandey said on Monday. He also said that even though the lenient 15% corporate tax rate for new manufacturing units was for a limited window (till FY23-end), the government was taking efficient steps to widen the tax base, which could facilitate further pruning of various tax rates including those for corporate and dividend incomes, in the coming years.

The idea is the apex court rulings would accord finality to who is in the right in the intractably fractious disputes between the taxman and taxpayers, helping mass disposal of about 4 lakh cases lingering on, at various fora – from the commissioner (appeal) level to the tax tribunals to courts and arbitration panels.

Top