Direct tax practitioners have urged the capital market regulator Securities and Exchange Board of India (SEBI) to extend the last date of availing the Settlement Scheme 2020 from October 31 to March 31 in the wake of the COVID-19 pandemic induced disruptions.
SEBI launched the Settlement Scheme 2020 in July to provide one-time settlement opportunity to the entities that have executed trade reversals in the stock options segment of BSE during the period from April 1, 2014 to September 30, 2015 against whom any proceedings are pending.
Companies were supposed to avail the scheme between August 1 and October 31.
"We request that the period of onetime settlement should be extended till 31st March 2021 due to Corona pandemic," Direct Taxes Professionals' Association (DTPA) president Narendra Goyal said in a letter to the SEBI chairman.
The representation also seeks to rationalise settlement terms and revise the settlement amount to a moderate limit.
"We requested SEBI for uniform consolidated settlement factor of 0.20 of net profit or loss in all cases instead of 0.55 proposed by SEBI. Settlement amount in all cases should be based on the resultant net profit or loss from transactions during the year/ period.
"The amount should not be left to the discretion of the Adjudicating Authority or any other authority," DTPA Representation Committee chairperson Narayan Jain said.