What is Direct tax immunity scheme on the cards?

The proposal will allow assessees to revise declared income without fear of past cases being opened up.

The govt, which is hard-pressed for revenue may come up with an immunity scheme for direct taxes in the upcoming budget, which will allow the assessees to declare the additional income of the previous six years without penalty or prosecution.

The proposal being examined will allow assessees to revise declared income with no fear of Past cases being opened up, or prosecution.

It will help improve compliance, besides ranking in revenues for the government.

The government project earning at least 50,000 crores in the first year of implementation itself.

It was recommended by the direct tax task force, led by former central board of direct taxes member Akhilesh Ranjan.

"People who want to declare more income from the previous year do not do so because the moment they do, they are taken up for the scrutiny, investigation, prosecution, and penalties are imposed on them," said official.

Recommendations made by direct tax panel are being seriously considered, he added.

Direct tax collection is facing a severe shortfall in the current fiscal year. After refunds, it saw a growth rate of 0.7% till December 15, against the budget target of 17.3% which would have resulted in RS13.35 trillion.