Vivad se Vishwas is a direct tax scheme for settling tax disputes between assessee’s and the income tax department. The extension of the deadline has come as a relief for those individuals who want to settle their tax disputes.
This is the second time the deadline for the scheme has been extended. Earlier, Finance Minister as part of first relief package had extended the deadline from March 31, 2020 to June 30, 2020.
This Extension will also give an opportunity to those who are yet to decide whether they should opt for the scheme or not.
What is Vivad se Vishwas scheme?
Vivad se Vishwas Scheme was announced in the Budget 2020, for settlement of disputes under Income Tax between assessee’s and the Income Tax Department.
All the assessee’s who are in dispute with the Department and cases including appeals, writs, SLP’s & arbitration, pending at any forum including Appellate Authorities, Courts & DRP’s (Dispute Resolution Panel), can avail benefit of this scheme.
The dispute can be of Income Tax or Interest & Penalty or TDS & TCS.
Scheme offered complete waiver of interest & penalty with a full & final settlement of the disputed tax, if the scheme was opted and payment was made before March 31, 2020, now extended to December 31, 2020. If payment was made after the mentioned date additional 10% of the disputed amount was required to be paid. However, now no penalty of 10% to be paid till December 31, 2020.