DTC 2.0: Legislation In The Making

The existing direct tax litigation system is complex and involves a long-drawn and cumbersome processes. The system allows a taxpayer to prefer an appeal at various levels of judicial forums, in case where it is aggrieved with the decision of the lower authorities. Also, the tax authorities can prefer an appeal if the ruling at higher levels are not in favour of revenue. The present hierarchy of the direct tax litigation system in India is as follows. In the existing structure, obtaining finality on a tax dispute by following the above hierarchy generally takes more than 10 years. As per a report published on March 31, 2018, tax-related disputes to the tune of over Rs6.38 Lakh Crore, are locked up at various levels. To be fair, the Central Board of Direct Taxes (CBDT) has already initiated certain steps. Recently, it has issued a circular enhancing the monetary limits for filing...