Payment Date for Vivad se Vishwas scheme extended.

Government of India has extended the deadline for making payment under the Vivad se Vishwas scheme till March 31, 2021. This deadline extension is being done for the third time in the series under the direct tax dispute settlement scheme. The last date to make declaration under the scheme has been extended to December 31 2020. This steps are being taken by the government in order to provide relief to the taxpayers.

Vivad se Vishwas scheme

The scheme was introduced by the finance minister Nirmala Sitharaman in the union budget 2020-21. The scheme has been aimed to settle down the pending direct tax cases. Some of the features of the scheme are stated under:

  • The scheme covers the disputes pending at the level of income tax appellate Tribunal, High Court, commissioner, Supreme Court and international arbitration.
  • Scheme also withdraws the penalty and interest of the taxpayers who paid their pending taxes by March 31, 2020.  In such cases, the tax payer paid only 25% of disputed amount as penalty till March 31, 2020. It will be increased to 30%.
  • This scheme is aimed at solving 483 thousand direct tax related disputes.

Direct tax Vivad se Vishwas Act 2020

The act was enacted on March 17 2020. The primary purpose of the Act was to settle direct tax disputes  in several appellate forums. Under the act, the designated authority  is not allowed to levy penalty or interest after the dispute is resolved. It also provides that, no other appellate forum can make decisions related to the dispute after the case is resolved. In case of the violation of the Income Tax Act, 1961 or in case false information is provided then the dispute can be revived.