Finance Minister Nirmala Sitharaman has said the direct tax dispute resolution scheme -- Vivaad Se Vishwas announced in Budget 2020 will be of great help to people as they will be able to save time and money spent in fighting cases. As many as 4.83 lakh direct tax cases worth Rs 9.32 lakh crore are locked up in various appellate forums such as Commissioner (Appeals), ITAT, High Courts, Supreme Court and Debt Recovery Tribunals.
Under the proposed scheme, taxpayers willing to settle disputes shall be allowed a complete waiver of interest and penalty if they pay the entire amount of tax in dispute by March 31 this year, following which a 10 per cent additional disputed tax shall have to be paid over and above the tax liability.
Further, where arrears relate to disputed interest or penalty only, then 25 per cent of disputed penalty or interest shall have to be paid if the payment is made by March 31, beyond which the same shall be enhanced to 30 per cent. The scheme would remain open till June 30, 2020. Besides, she asserted the government has taken measures to reduce litigation and a similar scheme was announced for indirect tax disputes.