Know about Karasamadhana Scheme 2021 to settle old dues under Karnataka State Taxes

What is Karasamadhana Scheme 2021?

If any assessment or reassessment is completed / to be completed

• on or before 31 st July 2021
• where the department has raised Tax demand or
• passed an order with No taxes but only interest and penalty
• If such demand is paid on or before 31 st October 2021, then you can take the benefit under this Scheme

What is the benefit?

• 100% waiver of Interest and penalty, except any penalty levied under section 10-A of the CST Act shall not be eligible for benefit of waiver

What type of Taxes?

Karnataka State Taxes namely Sales Tax, VAT, Central Sales Tax, Profession Tax, Luxury Tax, Agricultural Income Tax, Entertainment Tax, and Entry Tax.

What about the cases pending in Appeals?

Where a dealer has filed an appeal or any application against the order or proceedings relating to arrears of tax and arrears of penalty and interest before any Appellate Authority or Court and disposal of such application is still pending, the dealer shall withdraw such appeal or other application before availing the benefit of waiver of arrears of penalty and interest under this Scheme

What about penalty or interest paid already?

In respect of cases where any Appeal or other application is not filed, the dealer shall not be eligible for a refund of any penalty or interest already paid, either in full or partially, under this Scheme.

After availing of the benefit under this Scheme, can the taxpayer file an Appeal?

Some people may make this smart move! Pay the tax demand, take the waiver benefit and then, file an Appeal application against the Order demanding the Taxes!

Such things are not possible.! The dealer shall not file an appeal or other application before any Appellate Authority or Court or shall not seek rectification of orders/proceedings, after filing the application for availing the benefits of this Scheme or after availing the benefits of this Scheme, for whatever reasons.

How to avail of the benefit?

• Submit an online application for each year of assessment
• The Officer will scrutinize the application and come back if there are any discrepancies
• If any taxes are payable after the scrutiny of the application, such amount to be paid on or before 15 th November 2021
• Thereafter the Officer will pass the order waiving the penalty and interest within 30 days from the date of making the payment

In case you need any more information about this scheme, please write to This email address is being protected from spambots. You need JavaScript enabled to view it.

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