Vivad
se Vishwas Scheme
Introduction:-
The Direct Tax Vivad se Vishwas Act, 2020 introduced a
dispute resolution scheme, which was applicable to all appeals/petitions filed
by the taxpayers or the income tax department, which were pending until 31
January 2020, before any appellate forum. In essence, it offered complete
waiver of interest and penalty if the taxpayer agreed to pay the disputed tax
amount by 31 March 2020.
However the government has extended
the deadline for settling tax disputes under the Vivad se Vishwas scheme
without paying any interest and penalty to June 30, 2020 from March 31, 2020.
What
is Vivad se Vishwas scheme?
This is a direct tax scheme announced in Budget 2020, for
settling tax disputes between individuals and the income tax department.
Earlier, the scheme offered complete waiver on interest and penalty to the
taxpayers with a full and final settlement of the dispute if the scheme was
availed by March 31, 2020. An individual opting for settlement after March 31,
2020 was required to pay additional 10 per cent penalty on the disputed tax
amount.
Objectives
of this scheme:-
1. Reduce income tax
pending Litigation
2. Generate Timely Revenues
for Government
3. Help Taxpayers end
their tax disputes with the department by paying disputed tax and get waiver
from payment of interest & penalty. Also get immunity from prosecution.
Eligibilty
criteria for this scheme:-
1. Appeals, writs, SLPs, arbitration (filed
by Department or taxpayer) filed on or before 31 Jan 2020.
2. Orders for which time for filing appeal has
not expired on 31 Jan 2020.
3. Cases pending before Dispute Resolution
Panel (DRP).
4. Cases where DRP issued direction on or before
31 Jan 2020 but order has not yet been passed.
5. Cases where assessee filed revision application
under section 264 on or before 31 Jan 2020.
6. Dispute where payment has already been
made shall also be eligible. The pending appeal, writ, SLP, arbitration could
be against- Disputed tax (including interest or penalty on such disputed tax)
in relation to an assessment or reassessment order Disputed interest, disputed
penalty or disputed fees where there is no disputed tax.
7. Disputed tax can also include the tax
determined on default in respect of tax deducted at source (TDS) or tax
collected at source (TCS).
8. Disputed tax shall include tax on
enhancement notice.
Payment
Terms:-
CA Dhruv Anand
Mobile - 8130782695, 8383824051
Email - dhruvanand02@gmail.com
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