What Is 'vivad se vishwas' scheme?
The ‘Vivad Se Vishwas’ scheme allows 100% of the disputed tax and 25% of the disputed compensation or interest or fee to be settled in response to an assessment or reassessment order of the contested tax, the disputed interest, the disputed penalty, or the disputed fee.
In consideration of matters protected by the decree, the taxpayer is given exemption from the levy of interest, liability, and institution of any action for conviction of any crime under the Income-Tax Act.
The Direct Tax ‘Vivad Se Vishwas’ Act of 2020, adopted on 17 March 2020, aims at resolving direct tax disagreements in different forums of appeal.
Advantages Of 'Vivad Se Vishwas' Scheme
Instant relief
The resolution method will be completed among a month, transferral associate degree prompt finish to lengthy disputes.
Tangible savings
The scheme provides for relinquishing of interest, penalty, and prosecution. In disputes involving penalty, interest, or fine, solely partial amounts got to be paid. this can even have a control on the continued price of proceeding.
Flexibility
The theme provides taxpayers with the choice to settle on the years of payment (even if the dispute is unfinished at the command of the tax authorities), while not making a precedent.
Focus on core activities
Frees the management from allocating time and resources towards current disputes and permits organizations to specialize in strategic business matters.
eligibility of the scheme
1) Taxpayer or Agency lodged Appeals, Writ Petition, SLP, or Settlement by January 31, 2020, or Appellable Orders (orders on which the time period for filing an appeal has not expired by January 31, 2020).
2) Lawsuits pending before the Dispute Resolution Panel (DRP) or cases in which the DRP released a directive on or before January 31, 2020, but the Decision has not yet been passed.
3) Cases in which the assessee submitted a revision application under section 264 on or before the 31st of January 2020.
4) Any conflict in which payment has been made is also eligible.
Exclusions in 'Vivad se vishwas' scheme
The theme covers any or all of the incomplete legal proceedings, except for subsequent cases:
Cases associated with search or seizure
Cases wherever the prosecution has been instituted on or before the date of filing of the declaration
Cases associated with any unrevealed foreign financial gain or assets
Cases that are completed supported data received as a result of the exchange of data with different tax jurisdictions
Cases wherever the CIT (Appeals) has issued a notice of enhancement
Cases during which Associate in Nursing order of detention has been created or prosecution has been instituted/ conviction has been created underneath such Acts or notification has been created underneath the Special Court (Trial of Offences with reference to Transactions in Securities) Act, 1992.
