Lawstreet Journal

"Vivad Se Vishwas" Bill For Settling Direct Tax Disputes Introduced In Lok Sabha

Lawstreet Journal 11 Feb 2020 10:32pm

Image courtesy: Lawstreet Journal Legislative Corner "Vivad Se Vishwas" Bill For Settling Direct Tax Disputes Introduced In Lok Sabha

In order to resolve the disputes relating to direct taxes, the Finance Minister Nirmala Sitharaman introduced a Bill in the Lok Sabha on the 5th of February, 2020 (Wednesday) to further impose an effect on her 1st February's Budget announcement. As seen on November 30th, 2019, the aggregate of the direct taxes has been Rs. 9.32 trillion. The  Direct Tax "Vivad Se Vishwas" Bill of 2020 offers a waiver of interest, penalty and prosecution for settlement of the disputes. The disputes have to be pending before the Commissioner (appeals) in the Income Tax Appellate Tribunal (ITAT), High Courts, Supreme Court's as dated January 31st, 2020. A complete waiver of interest and penalty will only be given in cases of payment made by March 31st, 2020 further to which an additional 10% disputed amount will have to be paid. 

The Bill states that the amount of time, energy and resources required by the tax disputes is huge. And this further leads to the government's deprivation in the revenue collection. The taxpayers as well as the government will be benefited out of the scheme. It will be noted that a pending appeal might be against a disputed tax, interest or a penalty in relation the orders that will be assessed or reassessed. The appeal can also be against the determination of taxes on the defaults relating to the deduction of taxes or collection. It also states that 25% of the disputes penalty or interest needs to be paid pertaining to cases of disputed interests during… Continue Reading...


Tagged: lok sabha   Vivad Se Vishwas  
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