Over 48K entities declared Rs1.32 lakh crore under ‘Vivad se Vishwas’ tax amnesty scheme

More than 48,600 income-tax payers, together with public sector corporations have opted for the federal government’s tax amnesty scheme ‘Vivad se Vishwas’ involving a mixed settlement quantity of over Rs1.32 lakh crore, a finance ministry official mentioned.

As on November 17, the federal government has already obtained Rs72,480 crore from these entities as settlement proceeds, and the quantity is predicted to go up considerably earlier than the prolonged deadline of December 31, 2020, the official mentioned requesting anonymity.

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In the Union price range introduced on February 1, finance minister Nirmala Sitharaman had introduced the scheme that aimed to resolve legacy disputes involving direct taxes. Under the scheme, penalty and curiosity can be waived if the disputed quantity is paid earlier than March 31, 2020. Later, the deadline was prolonged. More than 483,000 legacy disputes are caught in varied tribunals involving direct taxes amounting to Rs9.32 lakh crore.

“In view of hardship being faced by taxpayers due to the pandemic situation of Covid-19, the deadline for filing of declarations under the scheme has been extended to December 31, 2020, and the deadline for payment without paying any interest and penalty has been extended to March 31, 2021,” the official mentioned.

Once the entities go for the scheme and make declaration, all appeals – each by taxpayer and by division – are withdrawn, he mentioned. The finance ministry on Tuesday reviewed the progress of the scheme.

It was determined to undertake a proactive method for implementation of the scheme by common monitoring of the circumstances the place taxpayers have filed declarations, the official mentioned.

The ‘Vivad se Vishwas’ scheme was launched for taxpayers on March 17, 2020, after approval of the Parliament with the target of lowering litigation, he mentioned. The scheme gives for settlement of disputed tax, disputed curiosity, disputed penalty or disputed charges in relation to an evaluation or reassessment order on cost of 100% of the disputed tax and 25% of the disputed penalty or curiosity or price.

“The taxpayer is granted immunity from levy of interest, penalty and institution of any proceeding for prosecution for any offence under the Income-Tax Act in respect of matters covered in the declaration,” he mentioned.

In her price range speech in Parliament this 12 months, Sitharaman had mentioned, “This year, I propose to bring a scheme similar to the indirect tax scheme ‘Sabka Vishwas’ for reducing litigations even in the direct taxes.” Presenting her first price range on July 5 final 12 months, Sitharaman had proposed the ‘Sabka Vishwas’ legacy dispute decision scheme for litigations associated to excise and repair tax. The scheme was carried out to cut back litigation in oblique taxes and it resulted in settling not less than 189,000 circumstances.