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
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.
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
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.
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.|
For any query related to scheme and computation of the tax amount, author can be reached at [email protected] or 9911690051.