What?
The Direct Tax Vivad Se Vishwas Act, 2020 aims for resolution of tax disputes and related matters.
Why?
- As on 30th November, 2019, there were around 5 lakh cases pending at various levels with disputed tax arrears amounting to approximately Rs 9 lakh crore.
- Further, given the lower rate of disposal of appeals, the amount of disputed tax arrears locked up in these appeals is increasing frequently,
What are the provisions?
Under the proposed scheme
- A taxpayer who avails of the scheme by March 31 has to pay 100% of the disputed tax amount in case of appeals related to disputed tax, and 25% of the disputed penalty, interest or fee in case of appeals related to disputed penalty, interest or fee.
- Payments made after March 31 will require a taxpayer to pay 110% of the disputed tax amount in case of appeals related to disputed tax, and 30% of the disputed penalty, interest or fee in case of appeals related to disputed penalty, interest or fee.
- The scheme is open till June 30, 2020.
