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Over 35,000 direct tax disputes resolved beneath Vivad Se Vishwas

The penalty and curiosity typically quantity to twice as a lot as the unique tax demand.

The authorities on Monday stated that 35,074 direct tax-related disputes have been resolved beneath the Vivad se Vishwas scheme as on September 8. This is whilst almost 6 lakh such instances are pending in numerous boards, together with commissioner of appeals, tribunals, excessive courts and the Supreme Court.

The dispute decision scheme meant for direct taxes was handed as an Act earlier this 12 months however the deadline for the scheme to avail concessional settlement provision has since been prolonged to December 31 on account of Covid-19. A tax official stated that numerous instances would come beneath the scheme nearer to the deadline.

The authorities is hoping {that a} substantial portion of over Rs 10 lakh crore in income caught in these instances will be unlocked by way of the scheme because it presents exemption from fee of penalty and curiosity on the disputed tax quantity. The penalty and curiosity typically quantity to twice as a lot as the unique tax demand.

In case the attraction is filed by the division, the taxpayers selecting to settle dispute and make fee earlier than December 31 will solely need to pay half the disputed quantity whereas penalty and curiosity can be waived off. However, if the case is expounded to dispute of penalty and curiosity then solely 12.5% of the quantity is payable.

If a taxpayer makes the fee after the deadline, the scheme will nonetheless be operational however its phrases can be much less engaging. For occasion, taxpayers pays 55% of the disputed quantity though penalty an curiosity would nonetheless be waived off. If dispute pertains to penalty and curiosity itself then fee for settlement is pegged at 15%.

The phrases of the scheme change for appeals which might be filed by taxpayers and in addition for instances involving search and seizure. Some instances have been excluded from the scheme. For occasion, search instances the place disputed tax is greater than `5 crore, prosecution instances beneath the Income tax Act or IPC filed by the division, instances regarding undisclosed international earnings and belongings, and instances accomplished on the premise of knowledge from international international locations, amongst others.

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