Initiative to curb tax litigation is well begun, but not even half done

Private rulings and settlement of cases after considering the hazards of litigation are some of the measures that have contributed to reducing disputes in other countries

The government’s initiative to examine ways of curbing litigation and study the best international practices could not have come soon enough. With more than Rs 6 trillion locked in income tax disputes as of the end of 2017-18, amounting to about 3.7 per cent of GDP for the year, it is important that measures for avoiding tax disputes are put in place at the earliest.   

Within the last four years, the amount locked in income tax disputes has risen by 25 per cent from Rs 4.98 trillion in 2014-15 to Rs 6.23 trillion in 2017-18.  For personal income tax, the