Delhi govt may roll out one-time tax amnesty scheme to settle pre-GST disputes
If approved, the scheme is expected to offer relief to traders and boost state revenue while easing the administrative burden of long-pending litigation.
According to officials, there are more than 3.5 lakh traders currently involved in tax-related litigation with the Delhi govt, and the total disputed tax amount is estimated to be over Rs 15,000 crore. Sources said the actual unrecovered value would be around Rs 5,500-6,000 crore, with the rest of the amount due from traders in the form of interest and penalties.
They added that these legacy cases date back to before the rollout of GST in July 2017.
"Several of these cases are currently stuck in courts, contributing to administrative delays and backlog. The proposed amnesty aims to reduce this legal burden by offering traders a clean slate," said a Delhi govt official. Sources said the trade and taxes department has shared the initial proposal with the finance department. The scheme will also have to be vetted by the planning and law departments before it is placed before the cabinet for its approval.
You Can Also Check:
Delhi AQI
|
Weather in Delhi
|
Bank Holidays in Delhi
|
Public Holidays in Delhi
The previous AAP govt also proposed to bring the tax amnesty scheme to provide relief to traders and recover the much-needed revenue that was stuck in litigation. The announcement was made by the then finance minister Manish Sisodia in the budget speech for the 2022-23 financial year, but the scheme never saw the light of day.
A senior Delhi govt official said the city's traders took up the matter every time their delegation met the chief minister to discuss issues related to tax, revenue, and the redevelopment of markets.
Sources said the recovery of tax revenue stuck for years will not only strengthen the financial position of Delhi govt, but will also save a large amount of money spent by the dispensation on a large number of tax-recovery cases against the traders in courts.
The GST and VAT are the biggest source of tax revenue earned by the Delhi govt. Of Rs one lakh crore budget presented by BJP-govt for the 2025-26 financial year, Delhi govt has estimated that Rs 68,700 crore will come from tax revenue, which includes Rs 49,000 crore from GST and VAT.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
17 minutes ago
- Time of India
Telangana HC raps I-T department for ignoring faceless assessment norms
HYDERABAD: The Telangana high court has pulled up the for repeatedly violating provisions of the Finance Acts of 2020 and 2021 by initiating reassessment proceedings under the Income Tax Act without adhering to the mandatory 'faceless assessment' procedure. Tired of too many ads? go ad free now A division bench comprising Justices P Sam Koshy and Narsing Rao Nandikonda made these observations while quashing reassessment notices issued to BJP leader and Armoor MLA Paidi Rakesh Reddy for the assessment year 2025-26. Taking serious note of the department's conduct, the bench observed that despite several judgments invalidating similar reassessment notices, the I-T department continues to act through jurisdictional officers rather than following the faceless mechanism mandated under sections 148A and 148 of the Act. "This continued disregard of settled legal precedent not only undermines the law but leads to avoidable litigation," the bench said. The court referred to its earlier ruling in the Kankanala Ravindra Reddy case (Sept 2023), where it held that reassessment actions initiated without following proper procedure are both procedurally flawed and jurisdictionally invalid. "A considerable period has passed since that decision, yet we see no corrective steps taken by the department," the bench said. It also highlighted that over 700 similar petitions are now pending before the court due to the department's continued non-compliance. While the I-T department has filed special leave petitions (SLPs) in the Supreme Court challenging such orders, the bench pointed out that no stay or interim relief has been granted in those cases. It further criticised the department for attempting to prolong proceedings in the high court, potentially to buy time to reinitiate proceedings under new provisions.
Economic Times
18 minutes ago
- Economic Times
ICICI Prudential AMC files for IPO; entirely an offer for sale by Prudential Corp
Formed in 1998, ICICI Prudential AMC is a joint venture between ICICI Bank and Prudential Corporation Holdings. Synopsis ICICI Prudential AMC has filed draft papers with SEBI for an IPO, comprising a complete offer for sale of 1.76 crore shares by Prudential Corp. The AMC, India's second-largest by AUM, will become the fifth ICICI Group firm to go public. ADVERTISEMENT The proposed IPO is structured entirely as an offer for sale (OFS) of 1.76 crore equity shares by Prudential Corporation Holdings, the UK-based joint venture partner. As there is no fresh issue involved, all proceeds from the offering will go directly to the selling shareholder, with ICICI Prudential AMC receiving no capital infusion from the issue. Formed in 1998, ICICI Prudential AMC is a joint venture between ICICI Bank and Prudential Corporation Holdings, with ICICI Bank holding a 51% stake and the remaining 49% owned by its British partner. As of March 2025, the AMC held a 13% market share in quarterly average assets under management (QAAUM), serving a customer base of 14.6 million across India. With over three decades of experience in the asset management sector, it stands as a major player in the Indian mutual fund landscape. If successful, the IPO will make ICICI Prudential AMC the fifth company from the ICICI Group to be publicly listed, joining ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities. It will also become the fifth asset management firm to go public, following HDFC AMC, UTI AMC, Nippon Life India AMC, Aditya Birla Sun Life AMC, and Shriram AMC is led by Nimesh Vipinbabu Shah as Managing Director and CEO, and Sankaran Naren as Executive Director and CIO. In FY25, the company reported a 29.3% year-on-year increase in net profit to Rs 2,650.7 crore, while revenue jumped 38.7% to Rs 4,682.8 crore. ADVERTISEMENT The IPO is being managed by an unprecedented 18 merchant bankers — the highest ever for an Indian IPO. These include global and domestic firms such as Citigroup, Morgan Stanley, BofA Securities, Axis Capital, CLSA, IIFL Capital, Kotak Mahindra Capital, Nomura, SBI Capital, ICICI Securities, Goldman Sachs, Avendus Capital, BNP Paribas, HDFC Bank, JM Financial, Motilal Oswal, Nuvama Wealth, and UBS Securities read: Why are investors flocking to money market funds amid falling interest rates? This marks the first time in Indian capital markets that such a large consortium of bankers has been engaged for a single IPO. ADVERTISEMENT ICICI Bank, in a board meeting held on June 27, approved the acquisition of an additional 2% stake in ICICI Prudential AMC. The bank noted that the move was intended to preserve its majority shareholding in the event of stock-based compensation being granted by the this year, on February 12, Prudential PLC announced its plan to partially divest its holding in ICICI Prudential AMC through a potential IPO. On the same day, ICICI Bank reaffirmed its commitment to maintaining majority control of the AMC as part of its long-term strategic vision. ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Time of India
18 minutes ago
- Time of India
ICICI Prudential AMC files for IPO; entirely an offer for sale by Prudential Corp
The proposed IPO is structured entirely as an offer for sale (OFS) of 1.76 crore equity shares by Prudential Corporation Holdings, the UK-based joint venture partner. As there is no fresh issue involved, all proceeds from the offering will go directly to the selling shareholder, with ICICI Prudential AMC receiving no capital infusion from the issue. Formed in 1998, ICICI Prudential AMC is a joint venture between ICICI Bank and Prudential Corporation Holdings, with ICICI Bank holding a 51% stake and the remaining 49% owned by its British partner. As of March 2025, the AMC held a 13% market share in quarterly average assets under management (QAAUM), serving a customer base of 14.6 million across India. With over three decades of experience in the asset management sector, it stands as a major player in the Indian mutual fund landscape. If successful, the IPO will make ICICI Prudential AMC the fifth company from the ICICI Group to be publicly listed, joining ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities. It will also become the fifth asset management firm to go public, following HDFC AMC , UTI AMC , Nippon Life India AMC, Aditya Birla Sun Life AMC , and Shriram AMC. The AMC is led by Nimesh Vipinbabu Shah as Managing Director and CEO, and Sankaran Naren as Executive Director and CIO. In FY25, the company reported a 29.3% year-on-year increase in net profit to Rs 2,650.7 crore, while revenue jumped 38.7% to Rs 4,682.8 crore. The IPO is being managed by an unprecedented 18 merchant bankers — the highest ever for an Indian IPO. These include global and domestic firms such as Citigroup, Morgan Stanley, BofA Securities, Axis Capital, CLSA, IIFL Capital, Kotak Mahindra Capital, Nomura, SBI Capital, ICICI Securities, Goldman Sachs, Avendus Capital, BNP Paribas, HDFC Bank, JM Financial, Motilal Oswal, Nuvama Wealth, and UBS Securities India. Also read: Why are investors flocking to money market funds amid falling interest rates? This marks the first time in Indian capital markets that such a large consortium of bankers has been engaged for a single IPO. ICICI Bank, in a board meeting held on June 27, approved the acquisition of an additional 2% stake in ICICI Prudential AMC. The bank noted that the move was intended to preserve its majority shareholding in the event of stock-based compensation being granted by the AMC. Earlier this year, on February 12, Prudential PLC announced its plan to partially divest its holding in ICICI Prudential AMC through a potential IPO. On the same day, ICICI Bank reaffirmed its commitment to maintaining majority control of the AMC as part of its long-term strategic vision. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ETMarkets WhatsApp channel )
