Notice: Undefined offset: 1 in /var/www/wp-content/plugins/visitors-online/visitors-online.php on line 425

Notice: Undefined offset: 2 in /var/www/wp-content/plugins/visitors-online/visitors-online.php on line 425
Direct tax - Shanmugam IAS academy in coimbatore
Direct tax

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.

Key data’s:

  • 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. 

Links to note:

https://www.iasipstnpsc.in/abolition-of-income-tax-ombudsman-and-indirect-tax-ombudsman/

https://www.thehindubusinessline.com/economy/policy/parliament-appproves-vivad-se-viswas-bill/article31061705.ece

https://www.financialexpress.com/economy/demonetisation-scanner-rajya-sabha-passes-vivad-se-vishwas-bill/1897305/

 

 

Leave a Comment

Your email address will not be published.

WELCOME TO SHANMUGAM IAS ACADEMY

Shop Youtube