What is One Time Settlement Scheme, Chandigarh: The Punjab Government has given a special gift to the businessmen after Diwali.
They introduced the One Time Settlement Scheme. This plan is designed to help the businessmen in Punjab, reducing the burden of old legal issues.
On Wednesday, Punjab Finance Minister Advocate Harpal Singh Cheema released a press note, announcing the One Time Settlement Scheme, 2023.
The scheme aims to benefit the trade and industry in the state and recover outstanding tax payments. It will be in effect from November 15, 2023, to March 15, 2024.
Benefits of the scheme
Finance Minister Harpal Singh Cheema mentioned that as of March 31, 2023, the total outstanding amount of tax, interest, and penalty up to Rs 1 crore in the state is Rs 6086.25 crore.
This scheme will benefit 39,787 taxpayers. Additionally, there’s a proposal to completely waive the dues of Rs 528.38 crore for taxpayers whose total outstanding tax was less than Rs 1 lakh.
Scheme details
The Finance Minister explained that taxpayers whose assessment has been prepared by the Taxation Department, Punjab until March 31, 2023, are eligible to apply for the settlement of their outstanding tax under this scheme.
The scheme covers dues under the Punjab General Sales Tax Act, 1948, Central Sales Tax Act, 1956, Punjab Infrastructure (Development and Regulation) Act, 2002, and Punjab Value Added Tax Act, 2005.
Important information about the proposed discount
Not everyone will benefit from this scheme. Businessmen with tax payable up to Rs 1 crore until March 31, 2023, can avail the scheme’s benefits.
Those with tax less than Rs 1 lakh will get complete exemption from tax, interest, and penalty.
For dues ranging from Rs 1 lakh to Rs 1 crore, there will be a 100 percent waiver on interest and penalty, and 50 percent of the tax amount will be waived.
