Haryana Government Unveils Tax Dispute Settlement Scheme: A Lifeline for Small Traders

In a significant move to support small traders, the Haryana government has unveiled a one-time tax settlement initiative designed to alleviate financial burdens and eliminate penalties. Announced by Chief Minister Nayab Singh Saini, this scheme is poised to offer substantial relief for small business owners who have faced difficulties with tax payments. With this new initiative set to commence on April 7, 2024, the government aims to foster a more supportive environment for local entrepreneurs.

Key Features of the One-Time Tax Settlement Scheme

The One Time Settlement Scheme (OTS) comes with several appealing benefits for taxpayers, particularly those with outstanding amounts. Here’s a breakdown of the key provisions:

60% Exemption: For pending payments under ₹10 lakh, 60% of the outstanding amount will be waived.
40% Payment for Disputed Taxes: Taxpayers with disputes below ₹10 lakh will only need to pay 40% of the outstanding amount.
50% Payment for Larger Disputes: For disputes ranging from ₹10 lakh to ₹10 crore, taxpayers are required to pay 50%.
Full Payment for High-Value Disputes: Those with disputes exceeding ₹10 crore must pay the full outstanding amount but will still benefit from the tax and penalty exemption.

Acknowledging the Contributions of Small Traders

During the announcement, Chief Minister Saini expressed gratitude towards the taxpayers of Haryana, stating, “Thanks to the contributions of our taxpayers, Haryana has emerged as a leading state in tax collection.” He emphasized that this initiative is not only beneficial for large industrial units but also crucial for small-scale traders.

The scheme responds to long-standing requests from the business community for a resolution to outstanding taxes that predate the implementation of the Goods and Services Tax (GST).

Timeline for Implementation

The One Time Settlement Scheme will be operational from January 1, 2024, until March 30, 2024. This timeline allows small traders to take advantage of the scheme efficiently and ease their financial strain.

In conclusion, the Haryana government’s new OTS initiative represents a promising opportunity for small businesses, aiming to boost the local economy and support the state’s development. With the tax relief measures in place, entrepreneurs can look forward to a more sustainable and prosperous future.