NEW DELHI: The CBDT has prolonged until January 31 the remaining date for taxpayers to avail a “one-time” facility to use for compounding of source of revenue tax offences, an order issued on Friday stated. The sooner cut-off date was once December 31, 2019.
In I-T parlance, compounding implies that the taxman does now not record a prosecution case in opposition to the perpetrator or tax evader in court docket in lieu of fee of due taxes and surcharges.
The verdict to increase the remaining date was once taken “in view of references gained from box formations, together with requests made via ICAI (Institute of Chartered Accountants of India) chapters in which it’s been dropped at the awareness of the CBDT that the taxpayers may just now not avail the good thing about the one-time leisure window because of authentic hardships,” the order issued via the Central Board of Direct Taxation (CBDT) stated.
The order was once accessed via PTI.
Therefore, the order mentioned, the date has been prolonged to present a last alternative to such taxpayers and cut back the pendency of present prosecution instances prior to the courts.
Programs, as in keeping with the process of the scheme, are to be filed prior to the best competent authority this is both a essential leader commissioner or a major commissioner or a essential director normal or director normal of the Source of revenue-Tax Division “on or prior to” January 31, 2020.
The CBDT, whilst launching the scheme in September remaining 12 months, had stated that this “one-time measure” is being undertaken to mitigate accidental hardship to taxpayers in deserving instances and to cut back the pendency of present prosecution instances prior to the courts.
“Circumstances had been dropped at the awareness of CBDT the place the taxpayers may just now not observe for compounding of the offence because the compounding software was once filed past 12 months,” it had stated.
The comfort, on the other hand, shall now not be to be had in recognize of an offence which is usually or in most cases now not compoundable, indicating cases of great tax evasion, monetary crime, terror financing, cash laundering, ownership of unlawful overseas belongings, benami houses or conviction via a court docket prior to now.
The CBDT round added that software for compounding of an source of revenue tax offence can also be filed in instances the place:
Prosecution court cases are pending prior to any court docket of regulation for greater than 12 months or any compounding software for an offence filed up to now was once withdrawn via the applicant only given that such software was once filed past 12 months or any compounding software for an offence have been rejected up to now only for technical causes.
The CBDT, which frames coverage for the tax division, had previous stated that compounding of offences is “now not an issue of proper” and the dep. can prolong any such aid handiest in sure instances.
This will probably be executed retaining in view elements like “behavior of the individual, the character and magnitude of the offence at the context of the details and instances of each and every case,” it had stated.