VIVAD SE VISHWAS

  • October 28, 2020
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Subject: Govt Schemes

Context: Government extends deadline to make payment under Vivad se Vishwas scheme till March 31, 2021.

Concept:

  • The amnesty scheme, at present, covers disputes pending at the level of commissioner (appeals), Income Tax Appellate Tribunals (ITAT), high courts, the Supreme Court and those in international arbitration.
  • It offers a complete waiver on interest and penalty to the taxpayers who pay their pending taxes by March.
  • The scheme aims to benefit those whose tax demands are locked in dispute in multiple forums.
  • If a taxpayer is not able to pay direct taxes by March 31st then, he will get further time till June 30th. However, in that case, he would have to pay 10 percent more on the tax.
  • In case it is just the interest and the penalty which is in dispute, the taxpayer will have to pay 25% of the disputed amount till March, and subsequently, it will be 30%.

Significance:

  • The scheme aims to resolve 483,000 direct tax-related disputes pending in various appellate forums.
Government Schemes