The Budget 2020 announced by the Smt. Nirmala Sithraman on 1st February 2020, included many growth-oriented schemes and policies for the economy. Allocating the budget proportionately to different sector development programmes, FM also placed some relieving changes in tax policies for the taxpayer of the country. The objective behind was to reduce the chances of litigations and compliance burden of the taxpayer.
The Income Tax Act, 1961 (known as “IT Act”) has various rigid provisions of punishment in case of default or non payment of tax or misrepresentation under different circumstances (including the situation of tax evasion). Taken into consideration the numerous pending litigations with the appellate forums, consumer forums, High Court, Vivad se Vishwas Scheme has been introduced which will benefit the taxpayers to settle their tax dispute matters in a very easy and compliant manner.
7 Things to Know about Vivad Se Vishwas Scheme
- This scheme is applicable to all direct tax disputes as mentioned in theSabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 which was effected from the 1st September 2019 last year for the indirect tax disputes related matters.
- The taxpayers can settle their long-pending litigations with different tax dispute forums by making an application under this particular scheme.
- The payment to the department shall be made only up to the tax disputed amount without any additional levy of penalty or interest.
- Such amount is to be paid to the department on or before the 31st March 2020.
- The application under this scheme post the 31st March 2020 shall be made with an additional amount as may be notified.
- The benefits under the scheme are available with payment of the additional amount as the case may be till the 30th of June, 2020.
- The taxpayer can be any person of whom the tax-related dispute is pending with any direct tax forum.
Therefore, the Government of India with the motive of reducing pending matters in the court of law along with saving money of taxpayers in appearing and concluding such long term court battles, proposed the scheme, as it will help them to settle all their pending disputes with the tax authorities within few interactions.
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