Vivad se Vishwas Bill, 2020
DIRECT TAX VIVAD SE VISHWAS BILL
What’s in news?
A new bill was passed by the Parliament in order to promote the tax collection and reduce the litigations.
- Name of the bill: The new bill “The Direct Tax Vivad se Vishwas Bill, 2020” was introduced in the Lok Sabha and now (March 13th) passed by both houses of the Parliament – and sent for President’s assent to became an act.
- Tabled by: The bill was passed by the Finance Minister Smt. Nirmala Sitharaman during the Union Budget 2020-21.
- Inspired by: The new bill was introduced as it was inspired by the success of the scheme called “Sabka Vishwas Scheme” – scheme reduced several indirect tax disputes.
- Objective: The Bill intends to provide a one-time opportunity to end disputes related to personal income tax and corporate tax.
- Tax arrears: The disputed direct tax arrears amount to ₹9.32-lakh crore.
- Eligibility: The scheme is eligible to various appellate forums such as commissioner (appeals), ITAT, high courts, the Supreme Court and debt recovery tribunals.
- It is not an amnesty scheme as the taxpayer has to pay 75 per cent of the undisclosed amount deposited during demonetisation as tax.
- Exemption: The benefit of the scheme was exempted to the large evasion-related and fraud cases.
- The Bill also restricts the number of disputes that can be settled under the scheme to Rs 4 crore if they emanate from search and seizure operations.
- Kinds of appeal: There are two kinds of appeal. They are;
- If the payment is made by March 31, the declarant has to pay the full amount of the disputed tax.
- The next category, the amount will be halved if the payment is made by March 31.
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