New Delhi (NVI): The Lok Sabha today passed the Direct Tax ‘Vivad se Vishwas’ Bill, 2020 which provides for dispute resolution related to direct taxes.
Union Finance Minister Nirmala Sitharaman introduced this bill in Lok Sabha on March 2, 2020, was passed amid din.
The Bill provides a mechanism for resolution of pending tax disputes related to income tax and corporate tax.
The Bill defines an appellant as the income-tax authority or the person, or both, whose appeal is pending before any appellate forum on January 31, 2020.
These appellate forums are the Supreme Court, the High Courts, the Income Tax Appellate Tribunals, and the commissioner.
As many as 4.83 lakh direct tax cases worth Rs 9.32 lakh crore are locked up in various appellate forums such as Commissioner (Appeals), ITAT, High Courts, Supreme Court and Debt Recovery Tribunals.
Under the proposed scheme, taxpayers willing to settle disputes shall be allowed a complete waiver of interest and penalty if they pay the entire amount of tax in dispute by March 31, 2020 following which a 10 per cent additional disputed tax shall have to be paid over and above the tax liability.
Further, where arrears relate to disputed interest or penalty only, then 25 per cent of disputed penalty or interest shall have to be paid if the payment is made by March 31, beyond which the same shall be enhanced to 30 per cent.
