‘Cairn, Vodafone Can Take Advantage Of Vivad Se Viswas '

Tax disputes such as those involving Vodafone and Cairn can take advantage of ‘Vivad se Viswas,’ a tax dispute resolution scheme, said Pramod Chandra Mody, Chairman of the Central Board of Direct Taxes (CBDT).

- Shishir Sinha

He also informed that individuals without business income can switch over to the new slab system based on their requirements. Excerpts:

There is confusion on the existing versus new income tax slabs…

Individuals without any business income have the option of switching over to the new tax regime. However, those with business income cannot revert to the old scheme once they have opted for the new one as there are issues relating to depreciation, among others.

Will it be a logistic nightmare for the assessment officer because of the assessee switching over to the new system in one year and switching off the next year?

We do not perceive any problem. Technology will be helpful in a big way. One has to just tick at the time of filing returns as to whether he is opting for the new tax slab or continuing with the old.

Salaried persons are not very sure which one is more advantageous…

There is no change in the tax deducted at source rate. So, it would not make any difference. The individual has to just inform his employer whether he is going for the new scheme or not after factoring in the incometax deductions or exemptions, which the taxpayer only knows best.