Krishna (Fictional Character): Arjuna, our Indian Constitution has given freedom of speech, residence, etc. to every citizen. Similarly, following the tax laws is also mentioned in the constitution. Every taxpayer should follow the tax laws applicable to him. But sometimes it happens that the taxpayer evades tax, commits an error while maintaining books, or he may misunderstand a provision of law or there are disputes on certain provisions. The consequences of these are that the taxpayer has to pay a lot of penalty and interest, go through a lot of mental stress and he feels that he has lost his freedom. That is why, the government has brought various schemes under various central and state tax laws so as to provide an opportunity to taxpayers to correct their mistakes. A taxpayer can be independent by utilizing these schemes.
Arjuna (Fictional Character): Krishna, when will a taxpayer get independence under income tax law?
Krishna (Fictional Character): Arjuna, under income tax law, to declare undisclosed income and to get rid of old disputes; the government has introduced various schemes. If they are utilized in proper way, then one can get independence.
Arjuna (Fictional Character): Krishna, how will taxpayer get independence from indirect tax law?
Krishna (Fictional Character): Arjuna, the government has introduced Indirect Tax Dispute Resolution Scheme to settle the disputes related to Excise, Customs and Service Tax. If appeal is made to the commissioner, the same can be withdrawn and, then taxpayers can get relieved by paying tax, interest and 25% penalty. One needs to follow the conditions mentioned in the scheme to avail it.
Arjuna (Fictional Character): Krishna, can taxpayer get independence from VAT law?
Krishna (Fictional Character): Arjuna, to settle old disputes relating to 11 tax laws falling under sales tax department, a separate scheme called “Maharashtra Settlement of Arrears in Dispute Act, 2016” has been introduced.
Arjuna (Fictional Character): Krishna, how will taxpayer get independence from profession tax law?
Krishna (Fictional Character): Arjuna, “Profession Tax Enrolment Amnesty Scheme, 2016” has been introduced for every unregistered person. Earlier, if a person has not done profession tax registration, then the person had to pay profession tax for the period of 8 years along with the interest and penalty as applicable after taking registration. But now the person can avail the benefit of the new Amnesty Scheme introduced, where, after taking registration the person has to pay profession tax only till 01/04/2013 which means he has to pay profession tax and interest only for 3 years. Also, no penalty will be levied.
Arjuna (Fictional Character): Krishna, what should one learn from all this?
Krishna (Fictional Character): Arjuna, the taxpayer should follow tax laws and should not play with it. If the law not followed, then one should avail the benefit of these schemes. The last date to participate in these schemes is 30th September. The government is bringing these schemes to the notice of people through circulars, advertisements, speeches. Otherwise it is being said that the consequences are going to be worse. That is why, there is a feeling of fear among the taxpayers everywhere. But government is on the way to settle old disputes as all these indirect taxes are going to get replaced by single tax called ‘Goods and Service Tax’. Therefore, one should avail the benefit from these schemes by remaining vigilant. Independence is a thing that has to be experienced by oneself. By doing wrong deeds, feeling of fear arises and a person’s mental and financial independence gets lost. In the attempt to earn a little, people choose the path of corruption and tax evasion. Due to this, penalty is levied, prosecution proceedings, etc. are conducted. It is recommended to follow the rules of the country of which we are citizen so as to be on a safer side. Otherwise, only our country is independent, but due to foreign investment and money, financial independence would not be achieved.