Union Budget 2021: In the last budget, the government announced the ‘Vivad se Vishwas’ scheme to resolve the ever-increasing direct tax disputes in the country. The purpose of this resolution scheme is to resolve the pending tax disputes in the country. Under this scheme, taxpayers will have to pay only the disputed tax amount. They will get full rebate on interest and penalty. According to one figure, about 4.83 lakh cases related to direct tax are pending in all courts. Taxpayers can take immediate advantage of this scheme and resolve disputes immediately. They will get relief from fines, interest and litigation.
Currently, due to the Kovid 19 pandemic, the deadline for payment under the trust scheme has been extended to 31 March 2021. According to the latest notification of the Central Board of Direct Taxes (CBDT), the declaration under the dispute-by-trust scheme will need to be made by 31 December 2020. However, with reference to that announcement, payment can now be made by 31 March 2021. There will be no need to give any additional amount for this.
The Confidence Plan came into effect on March 17, 2020, after the Budget was announced in 2020. The deadline for making announcements and payments under the scheme was initially increased from 31 March 2020 to 30 June 2020. Later it was increased to 31 December 2020 and now once again the deadline for payment has been increased to 31 March 2021.
Till now collected tax of 72,480 crores
How successful the Vishwas scheme was from the controversy, it is a little difficult to say within a year. One of the main reasons for this is that after the implementation of the scheme, the Kovid epidemic knocked. Many activities were delayed and canceled due to the epidemic. In such a situation, the corona will have an impact on the trust scheme, this possibility cannot be ruled out.
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However, according to the information recently revealed, the government has so far collected tax of Rs 72,480 crore through ‘Dispute to Confidence’. As of 17 November, a total of 45,855 announcements related to the disputed tax demand of Rs 31,734 crore were made under this scheme. Central public sector undertakings are also settling disputes worth a total of Rs one lakh crore under the scheme. Under the scheme, the central public sector undertakings and taxpayers have paid a loan of Rs 72,480 crore on the disputed tax demand.
What matters to resolve
The scheme includes outstanding tax, outstanding interest on tax, penalties, charges, cases related to TDS and TCS, cases of demonetisation, commissioner, income tax appellate tribunal, High Court and Supreme Court, all such disputes. Solutions can be applied for. Till 31 January 2020, the scheme will be applicable on the cases of tax which were pending before the Commissioner (Appeals), Income Tax Appellate Tribunal, High Court or Supreme Court. Pending appeals may be related to tax disputes, penalties or interest. It can also be related to assessment or re-assessment. Those orders can also come in it, in which the period of appeal was not finished before 31 January. That is to say, all the cases pending before the Dispute Settlement Committee (DRP) in which the DRP had issued the guidelines before 31 January 2020, but no order was issued. on the basis of this,
Some other facts
- Those matters can also be resolved under the ambit of the ‘Dispute to Confidence’ scheme, which is currently pending in foreign forums for the decision of Panch.
- Such disputed cases are also eligible for this scheme, where payment has already been made, but the taxpayer or tax department has filed an appeal or writ petition in the case.
- According to the Central Board of Direct Taxes (CBDT), the benefit of the scheme cannot be availed in the case where proceedings are pending before the Income Tax Settlement Commission (ITSC) or a writ petition has been filed against the order of ITSC.
- In cases where the Bilateral Settlement Procedure (MAP) resolution is pending or the taxpayer has not accepted the MAP decision, the relevant appeals will be eligible under trust from the dispute. In such cases, the person giving the details will have to withdraw both the MPP application and the appeal.
- Taxpayers will be eligible to make declarations in cases where the Advance Ruling Authority (AAR) has ruled in favor of the taxpayers and the department has filed an appeal in the High Court / Supreme Court and the total income of the taxpayer has been decided before the AAR. is.
Also relieved
Declarators under the trust-from-dispute scheme can amend it until the relevant authorities issue a certificate regarding tax dues and the amount payable. With the provision of amendment, taxpayers will be able to modify the application in case where there are some shortcomings or the matter has been reconsidered due to factual explanation.
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