‘Vivad se Vishwas: 24.5% of tax disputes opt for settlement’

Disputes value Rs 97,000 crore have opted for decision underneath the direct tax dispute decision scheme Vivad se Vishwas. In phrases of the variety of circumstances, a couple of quarter of over 5.10 lakh tax disputes have opted for settlement underneath the scheme, a Revenue Department official mentioned.
As many as 1,25,144 circumstances have to date opted for the Vivad se Vishwas Scheme, which is 24.5 per cent of the 5,10,491 circumstances that have been pending at totally different authorized fora, the official mentioned.
Comparing with earlier schemes, the official mentioned that the Vivad se Vishwas Scheme has acquired 15 instances the response as in opposition to the responses acquired underneath the sooner Direct Tax Dispute Resolution Scheme, 2016 (DTDRS), and with regard to the settled disputed quantity, it’s 153 instances of DTDRS. As per authorities information, the Kar Vivad Samadhan Scheme (KVS) Scheme of 1998 might collect Rs 739 crore with some thousand circumstances, whereas the 2016’s DTDR Scheme resolved 8,600 odd circumstances involving an quantity of Rs 631 crore.
The Budget has now introduced establishing of the Dispute Resolution Committee (DRC) introduced, which is able to take the Vivad se Vishwas Scheme additional, the official mentioned. Under DRC, additional impetus is to be supplied to resolve the litigations in the very best curiosity of the small taxpayers in a Tax Lok Adalat format which might deliver transparency and accountability in a faceless method, he mentioned.
The final date for submitting declaration underneath the Vivad se Vishwas scheme has been prolonged until February 28, whereas for paying the disputed tax the date is March 31.
The authorities had earlier prolonged the cost deadline for the scheme by three months until March 31 in view of the pandemic, conserving the deadline for making declarations underneath the scheme to be December 31.

Explained15 instances the response of earlier schemeCompared to earlier schemes, the Vivad se Vishwas Scheme has acquired 15 instances the response as in opposition to the responses acquired underneath the sooner Direct Tax Dispute Resolution Scheme, 2016 (DTDRS), and with regard to the settled disputed quantity, it’s 153 instances of DTDRS. As per authorities information, the Kar Vivad Samadhan Scheme (KVS) Scheme of 1998 might collect Rs 739 crore with some thousand circumstances, whereas the 2016’s DTDR Scheme resolved 8,600 odd circumstances involving an quantity of Rs 631 crore.

The scheme, enacted in March final yr, offers for settlement of disputed tax, disputed curiosity, disputed penalty or disputed charges in relation to an evaluation or reassessment order on cost of 100 per cent of the disputed tax and 25 per cent of the disputed penalty or curiosity or payment. The tax division would additionally require to situation refunds in a few of the circumstances settled underneath the dispute decision scheme.

The taxpayer is granted immunity from levy of curiosity, penalty and establishment of any continuing for prosecution for any offence underneath the Income Tax Act in respect of issues coated within the declaration.
As per the earlier figures launched for the scheme in November, the tax division had mentioned it had garnered Rs 72,480 crore underneath the scheme. Out of the whole disputed quantity of Rs 1.32 lakh crore coated by the declarations underneath the scheme to date, the share of CPSUs was estimated to be practically 76 per cent. 45,855 declarations have been filed by taxpayers underneath the scheme, involving disputed tax demand of Rs 31,734 crore until November 17, whereas disputed quantity of CPSUs being settled underneath the scheme was Rs 1,00,195 crore. Till December 31, about 96,000 circumstances had come having a disputed quantity of Rs 83,000 crore.