Direct Tax Vivad se Vishwas Act, 2020
The Hon’ble Finance Minister Nirmala Sitharaman, on 01.02.2020 in her speech for Budget 2020, has announced the Direct Tax Vivad se Vishwas Scheme. In corollary of which this Act was passed to provide for the resolution of disputed tax and related matters with an objective to reduce the pending income tax litigations at various appellate forums and timely collection of the revenue.
Under this scheme first step is to identify the eligible appeals and then quantify the disputed tax u/sec 2 (1) (j) and then compute the amount payable under the scheme u/sec 3 of the Act, which is 100% or more of disputed tax quantified in cases of appeals and 25% or 30% in cases of disputed interest, penalty or fees. If the appeal/writ / SLP is filed by the Income Tax Department then the amount payable on such settlement will be reduced by 50%.
Eligible appeals covered under the scheme:
Procedure For Filing Declaration Under Direct Tax Vivad Se Vishwas Scheme
Forms available shall be filed electronically. The declaration under section 4(1) of the Scheme shall be made in Form – 1which consisted of the details of the appeal to be settled accompanied by Form – 2 consisting of the Undertaking for waiving his right to seek any remedy under any law.
An officer not below the rank of Commissioner, the designated authority will issue the Certificate u/s 5 (1) in Form-3 within 15 days from the receipt of the declaration and within another 15 days declarant shall pay and on the failure of payment declarant has to withdraw the appeal.
Intimation of the details of tax paid along with proof of the withdrawal of appeals in Form-4 on receipt of which, the Designated Authority shall pass an order in Form-5 for full and final settlement u/s 5(2).
