The Lok Sabha, on March 2, passed the ‘Vivad Se Vishwas’ Direct Tax Bill, which aims to settle pending direct tax disputes in the country. It was passed with a few amendments before the Lower House was adjourned over a row concerning Delhi violence. The government aims to collect Rs 1.5 lakh crores from the project, The Times Of India reported.
Finance Minister Nirmala Sitharaman had initiated the Vivad Se Vishwas Bill, 2020 in the Lok Sabha on Monday, March 2, saying that it will be of great help because people spend enough time and money in settling cases.
The Vivad Se Vishwas Bill, proposed in 2020 and was approved by the Union Cabinet on February 12.
It was then tabled in the Parliament on March 2, to provide taxpayers with a gainful opportunity to resolve direct tax disputes within the current financial year by waiving interest and penalty on their pending taxes.
The bill seeks to resolve 4.83 lakh direct tax cases worth â¹9.32 lakh crore that is secured in various appellate forums such as Commissioner (Appeals), ITAT, High Courts, Supreme Court and Debt Recovery Tribunals, an amount equivalent to 82 per cent of the government’s direct tax revenue in the financial year 2019.
Once the bill gets a nod in the Parliament, it can be availed in case of search operations with recoveries of nearly â¹5 crores.
Under the Vivad Se Vishwas scheme, taxpayers who wish to settle disputes shall be allowed a total waiver of interest and penalty if they pay the entire tax amount in dispute by March 31, 2020. Any date beyond this will impose a 10 per cent additional disputed tax which will have to be paid above the tax liability.
In case of arrears related to disputed interest or penalty only, then a 25 per cent of disputed penalty or interest shall have to be paid if the payment is made by March 31, 2020, beyond which the same shall be increased to 30 per cent.
The Vivad Se Vishwas scheme is expected to remain open till June 30, 2020.
The bill will be tabled in the Rajya Sabha soon even though it does not need the approval of the Upper House as it has been classified as a ‘money bill’. Money bills need to be approved by the Lok Sabha only and the Rajya Sabha can only debate on them and suggest changes for the consideration of the Lok Sabha.
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