In line to Indirect tax amnesty scheme namely ‘Sabka Vishwas’ the Central Govt, has proposed direct tax amnesty scheme namely ‘Vivad Se Vishwas’ through Union Budget 2020. This amnesty scheme has also been introduced with the intent to reduce pending litigation in various appellate authorities and help Government in quick collection of the revenue.

Various feature of the Vivad Se Vishwas scheme

Applicability of Vivad Se Vishwas scheme

 Certain, Cases which are pending before various appellate authorities including CIT(A), ITAT, High Courts and Supreme Courts (Appellate Authority) as on 31st January 2020 will be covered.

Cases when Vivad Se Vishwas scheme not applicable

1. Where, Disputed tax arising out of search or seizure proceedings;

2. Where, the prosecution has been initiated before filing of the declaration;

3. Where, Tax arrears is in relation to undisclosed foreign source income

4. Where an addition is based on the information received from a foreign country as part of an exchange of information u/s 90 or 90A;

5. Where enhancement proposed by the CIT(A);

6. Where any person who has been detained under The Conservation of Foreign Exchange and Prevention Of Smuggling Activities Act, 1974, before the filing of a declaration;

7. Where, Any person, in whose case the prosecution has been  initiated prior to the filing of a declaration under any of the specified acts; and

8. Any person notified under Special Court (Trial of Offences Relating to Securities) Act, 1992, before the filing of a declaration

Last date to file declaration under Vivad Se Vishwas scheme

As per the scheme, the taxpayer should opt and deposit the disputed dues by 31.03.2020, in order to get 100% relief from interest, penalty and fees. Scheme also contain an extensions period for opting the scheme of three months i.e. upto 30.06.2020, however, in extended period scenario, the taxpayer has to pay additional 10% of the disputed tax amount.

Amount payable under Vivad Se Vishwas scheme and relief allowed

The amount payable and relief under the scheme is as under:

A. Where amount paid on or before 31.03.2020: 

Nature of tax arrears Amount payable on or before 31 March 2020 Relief
Where tax arrears include disputed tax, disputed interest and disputed penalty Amount of the disputed tax 100% relief from disputed Interest & Penalty
Where tax arrears relates to disputed interest or disputed penalty or disputed fee 25% of disputed interest or disputed penalty or disputed fee 75% of the disputed Interest, penalty and Fees

B. Where amount paid after 31.03.2020 but before 30.06.2020

Nature of tax arrears Amount payable thereafter but up to 30.06.2020 Relief
Where tax arrears include disputed tax, disputed interest and disputed penalty Amount of disputed tax plus 10% thereof. The additional 10% will be restricted to the amount of interest and penalty 100% relief from disputed Interest & Penalty.
Where tax arrears relate to disputed interest or disputed penalty or disputed fee 30% of disputed interest or disputed penalty or disputed fee 70% of the disputed Interest, penalty and Fees.

Other Important points related to Vivad Se Vishwas scheme

  • For availing the scheme, taxpayer shall file declaration before the designated tax authority.
  • Designated tax authority shall within 15 days of receipt of the declaration, pass an order determining the amount payable by the taxpayer and issue a certificate.
  • The taxpayer within 15 days from the date of receipt of the certificate will pay an amount to the designated authority.
  • On receipt of the amount, the designated authority shall pass an order in writing, stating that the due amount has been paid.
  • The order passed by the designated authority shall be final, and as a result, the Appellate Authority or arbitrators or mediator shall be barred from proceeding with the appeal.
  • It is pertinent to note that upon the filing of the declaration, Where the appeal pending before the CIT(A) or ITAT shall be deemed to have been withdrawn.
  • Where the appeal is pending before the High Court (in a writ or appeal) or in Supreme Court, the taxpayer will have to withdraw the said appeal/ writ and furnish the proof along with the declaration to be filed with designated authority.
  • Where, the taxpayer is in any arbitration under any law or tax treaties, the taxpayer has to withdraw it  and furnish the proof along with the declaration.
  • The taxpayer is also required to waive his right that may be available to him under any law or any tax treaty with respect to the tax arrears.
  • In case where the taxpayer makes any false statement or violates any condition, the declaration filed by him will be deemed to have never been made and the pending dispute will get revived.
  • The Scheme does covered litigation which are pending before disputes resolution panel.

For any query related to scheme and computation of the tax amount, author can be reached at capankajsingh7@gmail.com or 9911690051.

Author Bio

Qualification: CA in Practice
Company: PKS AND ASSOCIATES
Location: Delhi, New Delhi, IN
Member Since: 02 Aug 2018 | Total Posts: 3

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One Comment

  1. NKJAIN says:

    Dear Sir We got the Notice on 25/2/20 regarding the TDS demand from 2008 to 20019 from TDS Ward 2(2)(3). Earlier no letter notice received.No case pending with the authority for this period.. Can we ask the department to consider the case under the scheme Vivaad Se Vishwas.to settle the amount. nkjain

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