Tamil Nadu Chief Minister M K Stalin has announced a new tax waiver scheme for traders, aiming to alleviate the burden of pending tax disputes and provide financial relief to small traders. This significant move was made during a session of the State Assembly, under Rule 110.The announcement comes as a response to the substantial number of tax dispute cases involving traders in Tamil Nadu. As per the Chief Minister’s statement, there were 2,11,607 tax dispute cases involving 1,42,569 traders pending in the state, with an estimated tax arrear of Rs 25,000 crore.
Key highlights of the new tax waiver scheme:
Complete Waiver for Small Traders: Small traders facing tax dues, interest, and penalties up to Rs 50,000 per tax assessment year will receive a complete waiver. This move is expected to benefit 95,502 small traders, resolving 1,40,398 tax disputes.
Categorized Approach: Traders in other categories will be categorized based on the dues they owe to the government. These categories range from arrears of Rs 50,000 to Rs 10 lakhs, Rs 10 lakhs to Rs 1 crore, Rs 1 crore to Rs 10 crore, and those owing more than Rs 10 crore.
Partial Payments for Resolutions: Traders in the first category, owing tax dues between Rs 50,000 to Rs 10 lakhs, can resolve their disputes by paying 20% of their outstanding dues or a certain percentage of their outstanding tax, interest, and penalty.
Customized Guidelines: The waiver scheme is designed to cater to both those who accepted the assessment and those who have appealed their cases.
Interest Waiver: The government will completely waive the accrued interest on the dues for traders who come forward to pay their outstanding taxes.
Effective Date: The new waiver scheme will be effective from October 16, 2023, and will remain in force until February 15, 2024.