Vivad se Vishwas Scheme – The finance minister of India Smt. Nirmala Sitharaman introduces a new scheme for setting the pending for the taxpayers. The scheme “THE DIRECT TAX VIVAD SE VISHWAS ACT 2020“ was introduced by our finance minister on 1 February 2020 in the budget line for the financial year 2020-21 along with a circular issued by the Central Board of Direct Taxes ( CBDT ) viz,‘ circular no. 7/2020‘.
Vivad Se Vishwas Scheme or No Disputes but Trust Scheme is useful for the taxpayers with ongoing legal tax disputes at any level. Under this scheme, the interest and penalty associated with the disputed ta amount are completely waived off. As a result, the taxpayer has to pay only the amount of disputed tax, if the payment is made by 30 June 2020. At the date, an extra payment must be collected together with the tax amount.
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Please, Also note that the scheme is open till 30 June 2020. Available the scheme is useful for the taxpayers with outgoing legal taxes disputes at any level. Under this scheme, the interest rate and penalty associated with the disputed tax is the amount. Moreover, by availing of this, you get relief from the time-consuming litigation process.
WHY HAS THE SCHEME VIVAD SE VISHWAS SCHEME LAUNCHED?
- In the last budget of the year 2019-20, a scheme called “ Sabka Vishwas “ was launched to reduce the number of indirect tax cases. The scheme led to the settlement of more than the 1.89 Lakh indirect taxation-related cases.
- The new “ Vivad Se Vishwas “ scheme has been launched with a similar goal in an attempt to reduce the number of direct taxes litigation cases that are currently pending. Currently, 4.83 Lakh Direct tax appeals are awaiting in a range of appeal courts, including the Commissioner (Appeals), the Income Tax Appeals Tribunal (ITAT), the High Court and the Supreme Court. A large number of these disputes are supposed to be settled by the scheme.
- Moreover, suitable amendments in the Income Tax Act have been proposed to enable the system of “ Faceless Assessment “ (e-assessment ) to impart greater transparency, efficiency and accountability.
WHO CAN AVAIL THE VIVAD SE VISHWAS SCHEME?
- As per the Direct Tax Vivad Se Vishwas Act 2020 the taxpayers can avail the benefits of this scheme under the following different circumstances. If you appeal/ write petition / special leave petition filed either by your or by the income tax authority is pending as of 31 January 2020.
- If an order was passed by an Assessing Officer / Commissioner ( Appeals ) / Income Tax Appellate Tribunal / High Court on or before 31 January 20 and the date for filing a petition against such an order has not expired.
- If you had filled objections for Dispute Resolution Panel u/s 144C of the Income Tax Act and the Panel did not issue any direction before 31 January 20 or if the Panel issued a direction the Assessing Officer did not pass any order on or before 31 January 20.
- If you had filed an application for revision u/s 264 of the Income Tax Act, it was pending till 31 January.
LATEST UPDATES ON VIVAD SE VISHWAS SCHEME:
The Income Tax Department introduced the Direct Tax Vivad Se Vishwas Rules Act 2020 in march after the union budget announcement. Now, you can file declaration and understanding under the scheme to avail the benefits. The following sections will describe key aspects of this scheme, including the procedure to fill a declaration.