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The Vivad Se Vishwas Scheme 2020 is a Government of India scheme which facilitates easy settlement of income tax disputes. As per the latest notification, the Government of India has extended the deadline for settling tax disputes without paying any interest and penalty to 30th June 2020 from the earlier date of 31st March 2020. The extension has come into effect due to the current lockdown situation to contain the Coronavirus growth in the country. The decision was announced by the finance minister Nirmala Sitaram on March 24th, 2020.
Note: All information has been sourced from the official website of Vivad Se Vishwas Scheme 2020.
The Vivad Se Vishwas Scheme is a direct tax scheme introduced by the Government of India for settling disputes between taxpayers and the income tax department. The scheme aims to minimize tax-related litigation. Under this scheme, an individual taxpayer can claim full waiver on interest and penalty on the full and final settlement of the disputed tax amount. If an individual taxpayer opts for settlement post 31st March 2020, he/she is required to pay an additional 10% penalty on the disputed tax amount.
The bill defines the following features:
The scheme is applicable for the following:
|Payment made on or before||Appeal, writ, SLP, arbitration relates to disputed tax||Appeal, writ, SLP, arbitration relates only to disputed penalty or interest or fee|
|31st March 2020||100% of the disputed tax (125% in search cases) [waiver of interest & penalty]||25% of the disputed penalty or interest or fee|
|End date (likely to be 30th June 2020)||110% of the disputed tax (135% in search cases) [waiver of interest & penalty]||30% of the disputed penalty or interest or fee|
The exclusions under this bill are:
This includes the following instances: