Mumbai: Income Tax department prepares list of PSUs to resolve settlement dispute under Vivad se Vishwas Scheme
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The Income Tax (IT) department has prepared a list of central and state public sector units and has calculated the disputed tax demand to encourage firms to avail benefits of the Vivad Se Vishwas (VsV) scheme.

In Mumbai, the Income Tax department has compiled a list of 53 CPSUs and over 45 Maharashtra PSUs, sources close to the matter told a leading newspaper.

Sources also said that in case of CPSUs, the income tax department had calculated tax demands that went up to Rs 1.57 lakh crore. Moreover, the department may get over Rs 24,000 as revenue post dispute settlement.

Central Bank of India has a pending disputed tax demand of more than Rs 8,700 crore and after the disputes are settled, the bank would be liable to pay about Rs 4,500 crore as tax.

Similarly, LIC has a tax dispute of over Rs 65,000 crore and the tax department will raise over Rs 3,000 crore only if LIC settles all disputes in all forums.

Moreover, now, senior tax officials have been directed to hold meetings with chief secretary of each state to solve the dispute, sources said.

Earlier, the Central Board of Direct Taxes (CBDT) said that it will link all the annual appraisals and postings of field officers in each state with their performance in terms of collection under the 'Vivad se Vishwas' scheme.

This comes as there have been concerns over alleged 'tax terrorism' and undue harassment of genuine taxpayers by tax officials and also the economic growth is also slowing down, sources said.

What is 'Vivad se Vishwas' Scheme?

'Vivad se Vishwas' scheme for resolving income tax cases was announced during Budget 2020-21 that was presented by Union Finance Minister Nirmala Sitharaman and target of Rs 2 lakh crore by March 31 had been set by the government.

Sources said that there are 4.83 lakh direct tax cases that are worth over Rs 9 lakh crore pending in various appellate forums such as High Courts, Supreme Court and tribunal Courts.

According to the memorandum, the Income Tax department has told the field officers that their annual performance and increments would be linked to the collection outcomes of the disputes they handle.

Just after the dispute settlement scheme was announced, the department has asked its field officers to work on holidays or Saturdays so that when the scheme is formally launched, they get a head-start on the collection front.

(With inputs from Agencies)

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