In Budget 2020, the Union Minister for Corporate Affairs Nirmala Sitharaman and Finance has purposed Amnesty Scheme ‘Vivad se Vishwas’ Scheme for Direct Taxpayers to settle appeals pending at various forums.
Government has taken several measures to reduce tax litigations. In the last budget, SabkaVishwas Scheme was brought in to reduce litigation in indirect taxes. It resulted in settling over 1,89,000 cases. Currently, there are 4,83,000 direct tax cases pending in various appellate forums i.e. Commissioner (Appeals), ITAT, High Court and Supreme Court. This year, I propose to bring a scheme similar to the indirect tax SabkaVishwas for reducing litigations even in the direct taxes.
Under the proposed ‘Vivad Se Vishwas’ scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get a complete waiver of interest and penalty provided he pays by 31st March, 2020. Those who avail this scheme after 31st March, 2020 will have to pay some additional amount. The scheme will remain open till 30th June, 2020.
The Finance Minister stated that, around 4,34,000 pending cases on income tax in different forums and Courts across the Country.
A Taxpayer is availing the scheme after 31st march, the amount will be increased. The scheme will be available till 30th June 2020.
