The Tamil Nadu government unveiled a groundbreaking Samadhan scheme aimed at resolving long-standing tax issues and providing significant relief to traders. With approximately ₹25,000 crore in pending tax dues, mainly stemming from the erstwhile Tamil Nadu Value Added Tax and other legacy tax legislations, this scheme is set to transform the landscape of outstanding tax arrears and disputes between traders and the State commercial tax department.
The Samadhan scheme classifies tax dues into five categories based on the outstanding amounts: below ₹50,000, between ₹50,000 and ₹10 lakh, between ₹10 lakh and ₹1 crore, between ₹1 crore and ₹10 crore, and above ₹10 crore. Data indicates a total of 2,11,607 tax disputes involving 1,42,569 traders, with an outstanding tax amount totaling ₹24,895 crore.
The scheme presents a complete waiver of tax arrears, interest, and penalties for assessment years with dues under ₹50,000. This particular provision is set to significantly benefit small traders, allowing them to settle their tax disputes without the financial burden of outstanding dues.
In cases where dues fall within the ₹50,000 to ₹10 lakh category, traders can resolve their issues by paying only 20% of the outstanding dues or a portion of the tax, interest, and fines. The scheme provides traders in the other three categories with a similar opportunity to settle their disputes by paying a specific portion of the tax, interest, and fines. Importantly, for those who opt to resolve their dues through this scheme, the accrued interest on tax arrears is entirely waived.
The new Samadhan scheme is set to commence on October 16, 2023, and will remain in effect until February 15, 2024. This comprehensive waiver for dues below ₹50,000 has been lauded as a revolutionary relief for small traders, with the added bonus of accrued interest on tax arrears being entirely waived. The Tamil Nadu government’s move marks a significant step forward in supporting and revitalising the business landscape for small traders in the state.
Recently, the Haryana Government has announced the amnesty scheme to waive Rs. 8,000 crore in interest and penalty on property tax dues. This momentous announcement was made during a press conference held in Chandigarh on October 6th by Haryana Chief Minister Manohar Lal Khattar. Additionally, the chief minister disclosed that a 15 percent rebate would be granted on the payment of property tax arrears.
Read More: Haryana Govt’s Tax Amnesty: Waives Rs 8,000 Crore in Interest and Penalties on Property Tax Dues
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