FY24 Budget to unveil another income tax amnesty scheme

Budget 2023: Faced with a huge backlog of cases and with an aim to cut down litigation, the income tax department may offer a fresh dispute resolution (amnesty) scheme for

taxpayers. According to sources, the finance ministry is contemplating the move that would allow taxpayers to resolve cases stuck in litigation and appeal at various

fora. Taxpayers will have the option to pay the disputed tax amount and a penalty of 10-20% to dispose of the case. The move is being thought of at a time when there is

a huge backlog of pending cases, especially at the level of Commissioner of Income Tax (Appeals) due to the pandemic, when many hearings could not take place. Also read:

What Healthcare sector is expecting from Union Budget 2023 The amnesty scheme, if implemented, would help bring immediate additional revenue to the tax authorities, and

would come in handy for them in a year when the growth in tax collections is expected to moderate. It would also be beneficial to sections of taxpayers as it would reduce their

potential tax liabilities besides removing the uncertainties and costs associated with litigation. If the proposal is finalised, an announcement will be made in the Union Budget