Ministry/Department : Ministry of Finance
Scheme:
- The scheme was announced in the 2016-17 Budget and came into force on June 1, 2016.
- It provides for waiving interest and penalties if the principal amount involved in retrospective tax cases is paid.
- It aims at releasing about Rs. 5.16 lakh crore, which is locked in about 2.6 lakh pending direct tax cases.
- Under it, a disputed tax amount of up to Rs 10 lakh and the penalty will be forgone.
- However, in cases where the disputed tax amount is above Rs 10 lakh, a penalty of 25% will be levied.
- It waives off the interest and penalty for retrospective tax cases only if the company in question withdraws all appeals against the government at all judicial forums.
- Through the scheme, the government hopes to settle major retrospective tax cases facing Cairn Energy of UK and Vodafone Group.