Vivad Se Vishwas Scheme has been passed by Parliament to ease the compliance burden on the part of tax-payer. There are 483,000 pending income tax cases before appellate authorities as on 30 November 2019. The disputed tax in these appeals is nearly Rs 9.32 trillion, which is nearly a year’s direct tax collection for the government. The scheme intended for reducing litigation and for settling matters that have been pending for several years. The government expects to resolve 90% of the income tax disputes through this scheme.
Objectives of Vivad Se Vishwas Scheme 2020
- Reduce income tax pending litigation
- Generate timely revenues for the Government
- Help taxpayers end their tax disputes with the department by paying disputed tax and get waiver from payment of interest and penalty. Also get immunity from prosecution
Features of Scheme
- The scheme will be applicable to all appeals/ petitions filed by taxpayers or the income tax department, which were pending until 31 January 2020, with either the Commissioner of Income-tax (Appeals), Income-tax Appellate Tribunal, High Court, or the Supreme Court
- The due date to pay the amounts of disputed tax was 31st March 2020 without any additional payment.
- Following the lockdown situation in the country, the scheme has been extended to 30 June 2020 without any additional payment
- For payments made from April 1, an additional 10% of the disputed amount was to be paid
Settlement Amount under Vivad Se Vishwas Scheme 2020
Disputed Tax Amount |
Amount Payable if Application is filed before 30th June 2020 |
Amount Payable if Application is filed after 30th June 2020 |
Includes Tax, Interest and Penalty |
100% of Disputed Tax |
100% of Disputed Tax + 10% of Disputed Tax |
Includes Tax, Interest and Penalty determined in search cases by IT department |
100% of Disputed Tax + 25% of Disputed Tax |
100% of Disputed Tax + 35% of Disputed Tax |
Includes Interest and Penalty |
25% of Disputed Tax |
35% of Disputed Tax |
The final deadline of scheme is yet to be declared.
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