The Maharashtra State Government has proposed an Amnesty Scheme to be known as “Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Scheme-2022” in its budget
It provides concession to the arrears on various State taxes levied by the Sales Tax Department.
APPLICABILITY
- Any person having arrears in taxes levied by Sales Tax Department.
- Even person unregistered under the respective act, can avail such benefit
- Person who has already availed benefit under some Amnesty Scheme in previous regime can avail such benefit.
- If the person has filed an appeal against order passed, it must be withdrawn completely.
APPLICATION PERIOD
Application must be made and submitted between 1st April,2022 to 14th October, 2022. Application must be accompanied with the Payment Challan.
In case of One Time Settlement Option, Payment shall be made up to 30th September, 2022.
In case of Instalments Option (available to people having arrears above Rs. 50 lakhs),
- 25% of the payment must be done before 30th September,2022
- The remaining amount must be paid in Three Equal Instalments to be paid in Every Quarter from date of application.
- In case payment is not done within time, it shall attract interest rate of 12%.
RELIEF PROVIDED
- For Dues upto Rs 10,000 /-
- 0% of total arrears to be paid i.e 100% relief
- For Dues above Rs 10,000 /- but below Rs 10,00,000/-
- Lump sum Payment of 20% of arrears (i.e 80% Waive off of Arrears including interest)
- For Dues above Rs 10,00,000 /-
| Section | Nature of Payment | Existing TDS Rate | Proposed TDS Rate | Existing Threshold (₹) | Proposed Threshold (₹) |
|---|---|---|---|---|---|
| 193 | Interest on securities | 10% | 10% | No threshold | 10,000 |
| 194A | Interest (other than securities) - Banks, Co-op Banks, Post Office Schemes | 10% | 10% | 40,000 (General), 50,000 (Senior Citizens) | 50,000 (General), 1,00,000 (Senior Citizens) |
| 194A | Interest (other than securities) - Other Cases | 10% | 10% | 5,000 | 10,000 |
| 194 | Dividend | 10% | 10% | 5,000 | 10,000 |
| 194B | Winnings from lottery, crossword puzzle, etc. | 30% | 30% | Aggregate winnings exceeding 10,000 in FY | 10,000 per single transaction |
| 194BB | Winnings from horse race | 30% | 30% | Aggregate winnings exceeding 10,000 in FY | 10,000 per single transaction |
| 194D | Insurance commission | 5% | 2% | 15,000 | 20,000 |
| 194G | Commission on lottery tickets | 5% | 5% | 15,000 | 20,000 |
| 194H | Commission or brokerage | 5% | 5% | 15,000 | 20,000 |
| 194-I | Rent | 10% (land/building) / 2% (plant/machinery) | 10% (land/building) / 2% (plant/machinery) | 2,40,000 per year | 50,000 per month |
| 194J | Professional fees, Technical fees, Royalty, Any sum referred to in clause (va) of section 28 i.e. compensation or payments received for contract modifications, restrictions on business activity, or non-compete agreements | 10% | 10% | 30,000 | 50,000 |
| 194K | 194K - Income in respect of units of a mutual fund or specified company or undertaking | 10% | 10% | 5,000 | 10,000 |
| 194LA | Compensation on land acquisition | 10% | 10% | 250,000 | 500,000 |
| 194LBC | Income from securitization trust | 25% (Individual/HUF) / 30% (Others) | 10% | No threshold | No threshold |
ACTS COVERED
The Acts covered under this scheme are:
- The Central Sales Tax Act, 1956
- The Bombay Sales of Motor Spirit Taxation Act, 1958
- The Bombay Sales Tax Act, 1959
- The Maharashtra Purchase Tax on Sugarcane Act, 1962
- The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975
- The Maharashtra Sales Tax on the Transfer of Right to use any Goods for any Purpose Act, 1985
- The Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987
- The Maharashtra Tax on Luxuries Act, 1987
- The Maharashtra Sales Tax on the Transfer of Property in Goods involved in the Execution of Works Contract (Re-enacted) Act, 1989
- The Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002; and
- The Maharashtra Value Added Tax Act, 2002.