Tuesday, November 30, 2021
HomeIncome TaxIncome Tax e-settlement scheme, 2021 - Overview

Income Tax e-settlement scheme, 2021 – Overview

The Board of Direct Taxes (Income Tax Department) vide Notification No. 129/2021/ F.No. 370142/52/2021-TPL (Part IV) dated 01.11.2021, in exercise of its power under section 245D (11) & 245D (12) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) has issued a Scheme may be called the e-Settlement Scheme, 2021 to settle pending income-tax settlement applications transferred to a settlement commission.

Applicability & Scope:

  • It shall come into force on the date of its publication in the Official Gazette, i.e. 01.11.2021.
  • The scheme will be applicable to “pending applications in respect of which the applicant has not exercised the option under sub-section (1) of Section 245M of the Act and which has been allotted or transferred by Central Board of Direct Taxes to an interim board”.

To whom this relief has been given:

The relief was given to taxpayers who were eligible to file application as on January 31, 2021, but could not file the same due to cessation of Income Tax Settlement Commission as per the Finance Act 2021, and were hence permitted to submit the applications by September 30, 2021 before the interim board.

  • Key Highlights:

  1. Under the e-Settlement Scheme, 2021, an ‘interim board’ will decide on applications for settlement.
  2. The proceedings before the interim board shall not be open to the public.
  3. The e-Settlement scheme says that all communication between the Interim Board and tax payers will be exclusively in electronic mode.
  4. No person other than the applicant, their employee, and concerned officers of the interim board or the income-tax authority or the authorised representatives, without the permission of the interim board, can attend the proceedings even on videoconferencing or video telephony.
  5. CBDT shall establish suitable facilities for videoconferencing including telecommunication application software that supports video telephony at such locations as may be necessary.
  6. CBDT had said an assessee should have been eligible to file application for settlement on January 31, 2021 for the assessment years for which the application is sought to be filed and all relevant assessment proceedings of the assessee remain pending as on the date of filing the application for settlement.
  7. All pleadings before the Interim Board may, at the option of the applicant, be in Hindi or in English.
  8. The board said such applications, if found valid, will be deemed as “pending applications” and will not be allowed to be withdrawn.
  9. There is no need for the applicant or his or her representative to make any personal appearance before the Interim Board or before any Income-tax Authority or any ministerial staff posted with the Interim Board.
  10. The Interim Board, at its discretion, direct the publication of orders or portions containing the rulings of the Interim Board with such modifications as to names and other particulars therein, as it may deem fit

This digital process will bring more accountability, transparency and credibility. 

TaxClue Teamhttp://taxclue.in
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

Leave a Reply

Follow Us

2,057FansLike
924FollowersFollow
52FollowersFollow
spot_img

Recent Posts

PLI

PLI scheme for the Pharmaceutical Sector

0
“Worth Rs 15, 000 crore incentives for Pharma Industry” A Production-Linked Incentive, or PLI scheme, provides incentives in the form of tax rebates, import and...
Income tax

All you need to know about the new annual information statement (AIS)

0
The income-tax department has rolled out the new Annual Information Statement (AIS) in the Compliance section of the Income-tax portal, with the aim of...
Tax Return

Don’t skip this step to avoid rejection of your tax refund Filling ITR

0
 If you pay more tax than she is liable for in a financial year through excess tax deducted at source (TDS) or miscalculation in...
ITR

ITR filing process ends with receipt of intimation notice under section 143(1) – Here’s...

0
Many taxpayers are of the opinion that the process of filing income tax return (ITR) ends once they verify their tax returns. However, actually,...
Income tax

Income Tax e-settlement scheme, 2021 – Overview

0
The Board of Direct Taxes (Income Tax Department) vide Notification No. 129/2021/ F.No. 370142/52/2021-TPL (Part IV) dated 01.11.2021, in exercise of its power under...

Most Popular

%d bloggers like this: