Direct tax Bill to include DRTs
In news :
- Direct Tax Vivad se Vishwas Bill, 2020 to increase its scope to cover litigation pending in various debt recovery tribunals (DRTs).
- The aim of reducing litigation related to direct taxes.
- It was proposed to cover tax disputes pending at the level of commissioner (appeals), Income Tax Appellate Tribunals, high courts and the Supreme Court.
From Prelims Point of View:
Debt Recovery Tribunals:
- Debt Recovery Tribunals were established to facilitate the debt recovery involving banks and other financial institutions with their customers.
- DRTs were set up after the passing of Recovery of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993.
- At present, there are 33 DRTs and 5 DRATs functioning at various parts of the country.
- In 2014, the government has created six new DRTs to speed up loan related dispute settlement.
- Compared to the ordinary court procedures, DRTs were able to handle large number of cases with low delay during the initial phases.
- Though the DRTs have made impact on recovery front, several issues related to their performance in the background of rising volume of NPAs have appeared in later period.
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