Good Chance for settling your Income-tax Disputes…

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 beforeAppeals relates to disputed taxAppeals relates only to disputed penalty or interest or fees
31st March 2020100% of the disputed tax (125% in search cases)25% of the disputed penalty or interest or fees
End date (30th June 2020110% of the disputed tax (135% in search cases) such that it does not increase the total demand30 % 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.

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