CBDT looking to expand amnesty scheme, may allow self-declaration to settle tax demands: Sources

CBIC is also considering a dispute resolution scheme, with respect to matters involving customs duty, sources said (Image: Shutterstock)

The Central Board of Direct Taxes (CBDT) is looking at offering a chance for self-declaration to settle tax demands, CNBC TV-18 reported on January 6, citing sources aware of the new amnesty proposals that are being deliberated ahead of the rollout of the Budget 2023.

The taxation body could also expand the ambit of amnesty scheme to cases which are under appeal at various forums, the news channel said.

The sources said the CBDT was contemplating whether it should allow the withdrawal of appeals on the payment of full tax and interest along with the penalty amount.

It may propose amnesty with a penalty of 10 percent on the disputed tax amount if the matter is pending with the Commissioner of Income-Tax (Appeals).

For matters pending before Income Tax Appellate Tribunal (ITAT), an amnesty with a penalty of 20 percent on the disputed tax amount is being considered, the sources said.

The Central Board of Indirect Taxes & Customs (CBIC),too, is examining a dispute resolution scheme in matters involving customs duty, they added.

The CBIC's amnesty scheme may cover disputes over classification, valuation and exemptions, the sources said.

The report comes less than a month before the government is due to present the Budget for the fiscal year 2023-24 in Parliament.

India’s net direct tax collection during the April-November 2022 period grew 24 percent year-on-year to Rs 8.77 lakh crore. The amount collected is nearly 62 percent of the Budget 2022-23 estimates.