What Changes is the Maharashtra Government Proposing to the Amnesty Scheme?
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Synopsis
On July 3, the Maharashtra government introduced a bill to amend its tax amnesty scheme, aiming to recover substantial tax dues and alleviate long-standing litigations. The proposed changes could significantly impact the financial landscape for public sector undertakings, providing relief and reducing legal burdens.
Key Takeaways
- Maharashtra's tax amnesty bill aims to recover outstanding tax dues.
- The amnesty period is from March 21 to December 31, 2025.
- 100% payment is required for undisputed taxes.
- Outstanding interest and penalties will be waived.
- 30% and 50% payments are required for disputed taxes.
Mumbai, July 3 (NationPress) The Maharashtra government presented a bill on Thursday aimed at modifying the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies) Act, 2025, to facilitate the recovery of outstanding tax dues and to alleviate the burden of long-standing litigations.
The proposed legislation seeks to enhance the state amnesty scheme to enable the recovery of protracted lending dues. This amnesty scheme is set to be applicable from March 21 to December 31, 2025.
“A significant volume of tax levies is currently under litigation by various entities, including Corporations, Public Sector Banks, Departments, Rural or Urban Local Bodies, and other Authorities or Enterprises governed by Central Acts aside from the Companies Act, 2013 or State Acts,” the bill indicated.
Furthermore, the bill noted, “To unlock the funds tied up in outstanding tax dues and minimize the backlog of old litigations, the government finds it necessary to offer a lump sum payment option for the settlement of arrears consisting of tax, interest, penalty, or late fees, along with the closure of old pending litigations for those Authorities, Corporations, and Departments willing to settle by making such lump sum payments. Hence, it is proposed to amend clause (c) of sub-section (1) of section 2 of the Act accordingly.”
The bill clarifies that there is no provision for recurring or non-recurring expenditure from the Consolidated Fund of the state upon its enactment as an Act.
As per the statutory mandate, no relief will be granted for undisputed taxes prior to June 30, 2017. According to the bill, 100 percent of the undisputed tax must be settled. However, for disputed taxes, a payment of 30 percent is required for the period before March 31, 2005.
Per the statutory requirements, any outstanding interest and penalties will be waived. For the interval from April 1, 2005, to June 30, 2017, 50 percent of the disputed amounts must be settled.
To benefit from the Amnesty Scheme, the necessary payments must be made within the designated time frame.
Point of View
I observe that the Maharashtra government's proposed amendments to the tax amnesty scheme reflect a proactive approach to fiscal management, addressing long-standing tax disputes and enhancing compliance. This initiative is crucial for maintaining fiscal health and reducing litigation burdens on public sector entities.
NationPress
03/07/2025
Frequently Asked Questions
What is the purpose of the Maharashtra tax amnesty bill?
The purpose is to amend the existing tax amnesty scheme to facilitate the recovery of outstanding tax dues and reduce long-standing litigations.
What is the amnesty period mentioned in the bill?
The amnesty scheme is applicable from March 21 to December 31, 2025.
Will there be any penalties for undisputed taxes?
According to the bill, 100 percent of the undisputed tax must be paid before any relief is granted.
Are there any waivers included in the amnesty scheme?
Yes, outstanding interest and penalties will be waived as per the statutory mandate.
What is the payment requirement for disputed taxes?
For disputed taxes before March 31, 2005, a payment of 30 percent is required, and 50 percent for the period from April 1, 2005, to June 30, 2017.
