During the recent budget speech, the Indian Finance minister had announced a new scheme for settling the outstanding disputes with the Income tax department and the same was named as VIVAD SE VISHWAS (VVS).
This scheme once comes into force, is a very good opportunity for Income-tax assessees with long pending tax disputes. These disputes can be settled by making use of this scheme.
Eligibility Criteria to avail Vivad Se Vishwas Scheme :-
- Appeals / writs filed on or before 31.01.2020 and pending
- Order for which time for filing appeal has not expired on 31.01.2020
- Cases which are pending before Dispute Resolution Panel (DRP) on 31.01.2020
- Cases where Dispute Resolution panel issued direction on or before 31.01.2020 but no order has been passed.
- Cases where assessee has filed revision (Section 264) on or before 31.01.2020
- Search case if the disputed tax is less than Rs. 5 Crore in a year
- The appeals/writs filed by the tax payer or department
- Disputes where the payment has already been made shall also be eligible
- Cases in arbitration in India or abroad.
What are the disputes covered under this scheme ?
All disputes , subject to some exclusion , in relation to the –
- Disputed tax
- Disputed penalty
- Disputed interest
- Disputed fee
- Disputed tax deducted at Source (TDS) or tax collected at source (TCS)
What are the Salient features & Payment terms ?
| Payment made on or before | Appeals relates to disputed tax | Appeals relates only to disputed penalty or interest or fees |
| 31st March 2020 | 100% of the disputed tax (125% in search cases) | 25% of the disputed penalty or interest or fees |
| End date (30th June 2020 | 110% of the disputed tax (135% in search cases) such that it does not increase the total demand | 30 % of the disputed penalty or interest or fees |
Note :- if an issue in taxpayer’s pending appeal already decided in his favour by appellate forum or if Department has filed appeal on an issue , amount payable is 50% of aforesaid amounts.
Source :- www.incometaxindia.gov.in
