Vivad Se Vishwas Scheme 2020 has been announced. The scheme is similar to the indirect tax scheme “Sabka Saath”, announced by Finance Minister Nirmala Sitharaman during her first budget presentation in July 2019. Questions must be arising in your mind that what is this plan? How can this scheme help you? And many other questions, on this page you will find answers to all your questions. Please read this article very carefully till the endpoint.
Vivad Se Vishwas Scheme
| Name of the scheme | Vivad Se Vishwas Scheme |
| Introduced by | Union Finance Minister Nirmala Sitharaman |
| Announced for | Tax Payers |
| Announced on | 1st February 2020 |
| Benefits | a complete waiver on interest and penalty on pending direct taxes |
Regarding the Vivad Se Vishwas Scheme
The Union Finance Minister Nirmala Sitharaman announced the budget on 1 February 2020, announcing the Budget with confidence and passed by the Union Cabinet on 12 February 2020. The scheme has been announced for taxpayers who have not yet paid direct tax. Under this scheme, taxpayers will get full exemption of interest and penalty on the pending taxes for those who pay the tax before 31 March 2020. If taxpayers are not able to pay the tax within the time limit, they will get the time till June 30. To pay the tax, but in such case, he has to pay 10% of the additional tax amount along with the initial tax amount as interest or penalty.
Features of Vivad Se Vishwas Scheme
- The scheme offers settlement of pending direct tax disputes.
- The plan is to resolve 483,000 direct tax-related disputes pending in various appellate forums.
- According to this scheme, people who pay direct tax before 31 March 2020 will get the benefit of interest and penalty exemption.
- If taxpayers are not able to pay the tax by 31 March 2020, they will get further time till 30 June 2020.
- If payment is to be paid 10% more on tax after 31 March 2020 and before 30 June 2020
- If the dispute is only for interest or penalty amount then you have to pay 25% of the amount before 31 March 2020 and 30% if you pay after 31 March 2020.
Benefits of Vivad Se Vishwas Scheme
- Waiver of fine or interest on direct tax
- All pending disputes in appellate forums will be resolved
- If the dispute is regarding penalty or interest amount then you have to pay 25% of the amount.
Who can get the Vivad Se Vishwas Scheme?
Individuals whose case can get benefits under this scheme: –
- The writ petition is pending before the High Court
- A special leave petition is pending before the Supreme Court.
- An order has been passed by the Assessing Officer or Appellate Forum, furthermore the deadline for filing an appeal against such order has not expired on or before 31-01-2020.
- Which has lodged an objection with the Dispute Resolution Panel (DRP) under Section 144C and no instructions have been issued on or before 31-01-2020.
- Against whom instructions have been issued by the DRP, but the Assessing Officer has not yet passed the assessment order in pursuance of such instructions.
- Who has filed an application for amendment under section 264 and such application is pending on or before 31-01-2020.
Note: For more information keep up with our website, we will update the information disclosed by the government.
Payment Schedule
| Paid up to 31st March, 2020 | Paid up to 30th June 2020 after 31st March, 2020 | |
| Appeals file by the tax payer | ||
| Search cases with dispute of tax, penalty and interest | 125% of dispute tax | 135% of dispute tax |
| Other than search cases with dispute of tax, penalty and interest | 100% of disputed tax | 110% of disputed tax |
| Dispute of penalty and interest | 25% of dispute | 30% of dispute |
| Departmental appeal | ||
| Search cases with dispute of tax, penalty and interest | 62.5% of dispute tax | 67.5% of dispute tax |
| Other than search cases with dispute of tax, penalty and interest | 50% of disputed tax | 55% of disputed tax |
| Dispute of penalty and interest | 12.5% of dispute amount | 15% of dispute amount |