New Delhi: The upcoming budget could unveil a new and continuous framework for faster resolution of disputes over direct taxes.
The government is considering options such as mediation or a permanent dispute resolution system with pre-specified benchmarks on the lines of the ‘Vivad Se Vishwas’ scheme have been discussed, a person familiar to the pre-budget discussions said.
“Various options have been discussed… A final view should be taken shortly,” the person told ET. The idea is to prevent disputes and reduce litigation. According to the FY21 budget, more than Rs 8 lakh crore is locked up in direct tax disputes. It is being felt that along with the already introduced faceless assessment, an alternate settlement mechanism can be very effective at keeping disputes contained and would also be appreciated by the global investors.
The budget is an opportunity for FM Nirmala Sitharaman to unleash an employment and productivity multiplier through generous funding of data science, funnelled to research and commercial data centres.
Budget 2021: MSME sector employs around 120 million individuals
Budget 2021: The two percent interest subvention scheme for micro, small and medium enterprises (MSMEs) on loans must be extended with enhanced coverage of three-four per cent to the extent of Rs 300 lakh, suggests Mr Vikash Agarwal, President, Indian Chamber of Commerce (ICC). The two percent interest subvention scheme for micro, small and medium enterprises on loans was extended till March 31 with few business friendly provisions. The coverage of the scheme is limited to all term loans and working capital to the extent of Rs 100 lakh, which industry body Indian Chamber of Commerce expects to be extended to Rs 300 lakh in the upcoming Budget 2021. (
EXCLUSIVE | Budget 2021-22 may spell out plans for new development finance institution
Such a DFI is expected to be partially owned by the government and would fund infrastructure projects that banks and other lenders are wary of funding due to long gestation periods. It is a possibility that the India Infrastructure Finance Company could be merged with the new DFI.
The government may also announce some steps to revamp the bond market to finance infrastructure projects.
With infrastructure investment as the main plank on which the Modi government’s roadmap for post-COVID economic recovery is based, Finance Minister Nirmala Sitharaman may announce plans to set up a new development finance institution (DFI) in the Union Budget 2021-22,
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