Deadline to payments under Vivad se Vishwas scheme extended
On October 27, 2020, the Government of India extended the deadline for making payment under the Vivad se Vishwas scheme. The deadline has been extended to March 31, 2021. The deadline is being extended for the third time under this direct tax dispute settlement scheme.
In order to provide relief to the taxpayers the Government of India has extended the deadline of Vivad se Vishwas scheme. Also, the last date for making declaration under the scheme has been extended to December 31 2020.
Vivad se Vishwas scheme
The scheme was introduced in union budget 2020-21 by the finance minister Nirmala sitharaman. The scheme aims to settle pending direct tax cases.
Key features of the scheme
the scheme will cover disputes pending at the level of income tax appellate Tribunal, commissioner, High Court, Supreme Court and international arbitration. Also, the scheme weans penalty and interest to the taxpayers for those who paid their pending taxes by March 31, 2020. For those cases that are under dispute the tax payer paid only 25% of disputed amount as penalty till March 31, 2020. Subsequently it will be 30%. This scheme is expected to solve 483 thousand direct tax related disputes.
Direct tax Vivad se Vishwas Act 2020
It was enacted on March 17 2020. The main purpose of the Act was to settle direct tax disputes the in several appellate forums. The designated authority under the act is not allowed to levy penalty or interest after a dispute is resolved. Also, no other appellate forum can make decisions related to the dispute after a case is resolved. However, if an appellant violates Income Tax Act, 1961 or provides a false information, then the dispute can be revived.
Category: Government Schemes Current Affairs