MUMBAI: The Central Board of Indirect Taxes and Customs (CBIC) has announced an Amnesty Scheme for taxpayers, which will provide a life line to taxpayers who missed their appeal deadlines or had their appeals rejected on grounds of time limitations. The scheme applies to appeals against demand orders issued on or before March 31, 2023. Further, the appeals must be filed by January 31, 2024.
Read More: Income Tax Return Filing: Highest-ever Number Of ITRs Filed In FY24
Taxpayers opting for the amnesty scheme are required to make a pre-deposit of 12.5% of the disputed tax amount. Notably, at least 20% of this pre-deposit (equivalent to 2.5% of the tax under dispute) must be debited from the Electronic Cash Ledger.
According to Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India, “The introduction of the amnesty scheme is a welcome move, giving a sigh of relief to taxpayers who had exhausted the statutory time limit to file appeals.
Read More: India’s gaming industry’s revenue to fall due to 28% GST, claims report
The benefit is available upon payment of additional pre-deposit (of 2.5% of the Tax in Dispute through Electronic Cash Ledger) which may cause hardships to taxpayers in settlement of disputes for the past period.”
It should be noted that the amnesty scheme does not apply to appeals related to demands that do not involve tax.
Read More: Income Tax Calender 2023: Important Dates In November For Taxpayers; Check List
“Appeals can now be filed against orders involving tax liability along with interest and penalty but not against orders involving merely interest, fine, and/or penalty,” explained Prabhakaran.
