Vivad Se Viswas Scheme - for Direct Tax
Vivad Se Viswas - An Amnesty Scheme: Introduced in Budget 2020 on 1st February 2020
by Hon’ble FM Smt. Nirmala Sitharaman
- Tax Dispute Settlement Scheme (to settle the unresolved issues pertaining to Direct Tax)
- No Penalty or Interest if You Settle Tax Dispute up to 31st March 2020 / 30th June 2020
1. Applicability of Vivad Se Vishwas Scheme
The cut-off date for the applicability of the Vivad Se Viswas Scheme is pendency of appeals as on 31st day of January 2020.
The pendency can be before Commissioner of Income Tax (Appeals), Income Tax Appellate Tribunal (ITAT), High Courts and Supreme Court.
a. Appeal where demand is pending or has been paid,
b. Appeal may be against disputed tax, interest or penalty in relation to an assessment or reassessment order or against
disputed interest, disputed fees where there is no disputed tax and,
c. Appeal may also be against the tax determined on defaults in respect of TDS or TCS.
2. Amount Payable for Resolution of Disputes
3. WHO ARE NOT ELIGIBLE - The Exclusion from the Vivad Se Viswas Scheme
(a) Tax arrears in relation to an Assessment Year (‘AY’) in respect of which assessment is made under Section 153A or 153C of the Income-tax Act 1961 (‘the Act’);
(b) Tax arrears in relation to an AY for which prosecution has been instituted before filing of declaration;
(c) Tax arrears in relation to undisclosed income from source outside India or undisclosed asset outside India;
(d) Tax arrears in relation to assessment/ reassessment made on basis of information received under agreement referred to in Section 90 or 90A of the Act;
(e) Tax arrears in relation to an appeal pending before CIT(A), wherein a notice for enhancement of income has been issued by the CIT(A) under Section 251 of the Act
4. Procedure to apply for under Vivad Se Viswas Scheme:
Any person who wishes to opt for the Vivad Se Viswas Scheme may file a declaration in a prescribed manner on or before the last date (to be notified), to the Designated Authority (DA). The taxpayer is required to withdraw the appeal pending before the appellate forum and is required to file a proof of such withdrawal along with the declaration.
Upon filing the above declaration:
a. the designated authority shall determine the amount payable Within 15 days from the receipt of declaration, and grant a certificate containing the details of tax arrears and amount payable under Section 5(1) of Income Tax Act, 1961.
b. The amount so determined under the certificate shall be paid (Non-refundable) within 15 days of receipt of the certificate and intimate to the Designated Authority who shall thereafter pass an order under Section 5(2) of Income Tax Act, 1961.
5. Benefit of Vivad Se Viswas Scheme:
On passing of the above stated order under Section 5(2) of Income tax Act, 1961, matters stated therein shall be concluded and shall not be reopened in any other proceedings under IT Act or under any other law.
And in respect of such tax arrears, No proceedings shall be instituted in respect of an offence or no penalty or interest shall be imposed or levied under IT Act.
Any appeal pending before Commissioner of Income Tax (Appeals) or Income Tax Appellate Tribunal (ITAT) shall be deemed to be automatically withdrawn from the date when certificate under Section 5(1) of IT Act is issued by Designated Authority (DA).