Are you having any tax-related dispute? Do you have any tax payment pending? Do you have to pay a lot of penalty or interest on tax due? If yes then today we have a very important scheme for you. Vivad Se Vishwas Scheme 2020 has been announced. This scheme is similar to the indirect tax scheme “sabka Vishwas” which was announced by the Finance Minister Nirmala Sitharaman during her maiden budget presentation in July 2019. You must have questions in your mind what is this scheme? How this scheme can help you? And many other questions, on this page you will get answers of all your questions. Please read this article very carefully until the endpoint.
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About Vivad Se Vishwas Scheme
Vivad Se Vishwas Scheme 2020 has been announced by the Union Finance Minister Nirmala Sitharaman on 1st February 2020 while announcing budget and passed by the union cabinet on 12th February 2020. This scheme has been announced for the taxpayers who yet not paid the direct tax. Under this scheme, taxpayers will get a complete waiver on interest and penalty on pending taxes for those who pay the tax before 31st March 2020. In case the taxpayers are not able to pay the tax within the deadline they will get further time till 30th June to pay tax but in such case, she has to pay 10% of tax amount extra with initial tax amount as interest or penalty.
Key Highlights of Vivad Se Vishwas Scheme
|Name of the scheme||Vivad Se Vishwas Scheme|
|Introduced by||Union Finance Minister Nirmala Sitharaman|
|Announced for||Tax Payers|
|Announced on||1st February 2020|
|Benefits||a complete waiver on interest and penalty on pending direct taxes|
|Scheme type||Central government scheme|
Features of Vivad Se Vishwas Scheme
- This scheme offers the settlement of pending direct tax disputes
- This scheme is to solve 483,000 direct tax-related disputes pending in various appellate forums
- As per this scheme, those who will pay direct tax before 31st March 2020 will get interested and penalty waiver benefit
- If the Tax Payer is not able to pay tax till 31st March 2020, they will get further time till 30th June 2020.
- If the payment is made after 31st March 2020 and before 30th June 2020 have to pay 10% more on tax
- In case if the dispute is just for the interest or penalty amount then you have to pay 25 % of the amount before 31st March 2020 and 30% of the amount if you pay after 31st March 2020 but before 30th June 2020
Benefits Of Vivad Se Vishwas Scheme
- Waiver of penalty or interest on direct tax
- All the pending disputes in the appellate forums will be solved
- If the dispute is about the penalty or interest amount then you have to pay 25% of the amount only.
|Paid up to 31st March, 2020||Paid up to 30th June 2020 after 31st March, 2020|
|Appeals file by the tax payer|
|Search cases with dispute of tax, penalty and interest||125% of dispute tax||135% of dispute tax|
|Other than search cases with dispute of tax, penalty and interest||100% of disputed tax||110% of disputed tax|
|Dispute of penalty and interest||25% of dispute||30% of dispute|
|Search cases with dispute of tax, penalty and interest||62.5% of dispute tax||67.5% of dispute tax|
|Other than search cases with dispute of tax, penalty and interest||50% of disputed tax||55% of disputed tax|
|Dispute of penalty and interest||12.5% of dispute amount||15% of dispute amount|
Who can avail the scheme benefits?
Those persons can avail the benefits under this scheme whose case:-
- Writ petition is pending before the High Court
- Special leave petition is pending before the Supreme Court.
- An order has been passed by the Assessing Officer or appellate forum, besides the time limit for filing an appeal against such order has not expired on or before 31-01-2020.
- Who has filed an objection with the Dispute Resolution Panel (DRP) under section 144C and no direction has been issued on or before 31-01-2020.
- Against whom directions have been issued by DRP but the Assessing Officer has not yet passed an assessment order in pursuance of such directions.
- Who has filed an application for revision under section 264 and such application is pending on or before 31-01-2020.
Note: For more details stay tuned with our website, we will update the information as disclosed by the government.