Direct tax Bill to include DRTs

  • IASbaba
  • February 14, 2020
  • 0
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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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