The Vivad Se Vishwas Scheme was launched by finance minister Nirmala Sitharaman on 1st February 2023 while presenting the budget to solve the problems and disputes which can be solved with the talks.
Through the help of this scheme, the government will try to solve the problem of Disputed tax cases of direct taxpayers. With the help of this Vivad Se Vishwas Scheme, candidates only need to pay the amount of disputed taxes. With this government will make sure that you should not pay any interest or penalty etc.
This was the basic details about the Direct Tax Vivad se Vishvas scheme, now we will start the main details about the scheme like what are it’s criteria and how will you pay in this scheme With the help of this article, we are going to discuss all this scheme with the eligibility criteria, benefits, and all other details.
Direct Tax Vivad se Vishwas Scheme
The Vivad se Vishwas Scheme was originally introduced in the Union Budget 2020.
Soon after the budget advertisement, the Direct duty Vivad se Vishwas Bill 2020 was introduced in the Lok Sabha on 05 February 2020.
The congress latterly passed the bill, after entering the assent from the Honourable President of India.
It was also legislated as ‘ The Direct duty Vivad se Vishwas Act, 2020 ’ on 17 March 2020.
This Act provides the taxpayers with an option to end the tedious action processes by paying the due duty on the disputed income and admit a full or partial disclaimer of interest or penalty, as applicable.
The quantum outstanding by the declarant under the Vivad se Vishwas Scheme GST will be determined by the Designated Authority( DA) as per Section 5 of The Direct duty Vivad se Vishwas Act, 2020 within fifteen days from the date of damage of the protestation.
What Are The Objectives Of Vivad se Vishwas Scheme ?
The main objectives of Vivad Se Vishwas Scheme are:
- To reduce pending income duty actions,
- To induce timely profit for the government,
- To give certainty and peace of mind to taxpayers,
- To save taxpayer’s time and plutocrat that would else be spent on long and tedious action proceedings.
Overview on Vivad Se Vishwas Scheme
- Name of Scheme – Vivad se vishwas Scheme
- Continue Year of Scheme – 2023
- Beneficiary – Taxpayers
- Apply method – Online
- Purpose – resolution of tax matters
- Department – Central government
- Official website – www.incometaxindiaefiling.gov.in
Tax payments under the Vivad se Vishwas Scheme
The quantum outstanding is depicted in the following table, If you file a protestation under the Vivad se Vishwas Act on or before the last date as notified by the Central Government.
|Nature of Tax Arrear||Amount payable under the Vivad se Vishwas Act on or before 30th June, 2020||Amount payable under the Vivad se Vishwas Act on after 30th June 2020, but on or before the last date|
|Disputed tax + interest chargeable/ charged + penalty leviable/ levied on the disputed tax||Only the amount of the disputed tax.||Amount of disputed tax + 10% of the disputed tax. Please note that if the 10% exceeds the sum of interest and penalty, then the excess amount will be ignored.|
|Tax + penalty or interest u/s 132 or 132A of the Income Tax Act||Amount of disputed tax + 25% of the disputed tax. Please note that if the 25% exceeds the sum of penalty and interest, then the excess amount will be ignored.||Amount of disputed tax + 35% of the disputed tax. Please note that if the 35% exceeds the amount of interest and penalty, then the excess amount will be ignored.|
|Disputed interest/ penalty/ fees||25% of the disputed interest/ penalty/ fee.||30% of the disputed interest/ penalty/ fee.|
Application process for Vivad se Vishwas Scheme-2023
Through the help of this Vivad Se Vishwas Scheme government will make sure to provide benefits to taxpayers, whose case is pending in any tax forum.
After this government will also make sure to clear things in return for finance for all those candidates; which will make the procedure easy. This government will ensure to not reveal things to any other candidate. The step by step procedure are:
- Step 1: Fill out Form 1, shown below to file a protestation to the designated authority under the Vivad se Vishwas Scheme.
- Step 2: If you have filed any appeal before the appellate forum or any writ petition before the High Court or the Supreme Court, then withdraw such an appeal and provide a proof for the same .
- Step 3: File an undertaking giving up your right to seek any remedy or any claim with respect to the tax arrear in Form 2. Please note that Form1 and Form 2 should be verified and signed by you or by a competent person on your behalf as per Section 140 of the Income Tax Act.
- Step 4: Provide the detail of the payment as per instrument entered from the designated authority in form 4. Also give a evidence of pullout of appeal or expostulation or operation or write solicitation etc. in the form.
- Step 5: Once you complete the payment, you will receive an order (Form 5) from the designated authority acknowledging the receipt of payment .
official website – https://www.incometaxindiaefiling.gov.in
Frequently Asked Questions (FAQs)
- What is meaning of duty arrear ?: duty arrear refers to the quantum of disputed duty, including the quantum of interest and penalty, if any. Alternately, it can also relate to the disputed quantum of interest or penalty or figure, as per the vittles of the Income Tax Act.
- When will I get to know the amount payable under Vivad se Vishwas Scheme?
- : You will get to know the amount payable under Vivad se Vishwas Scheme within 15 days from the date of receipt of the declaration by the designated authority. The authority will electronically issue a certificate specifying the amount of tax arrear and amount payable in Form 3.
- What immunity is provided under Vivad se Vishwas Scheme?: The advantage of Vivad se Vishwas Scheme is the immunity it provides to the taxpayers. No legal proceedings can be initiated and no penalty/ interest can be charged with respect to tax arrears under this scheme
In this article we have discussed about the Vivad se Vishwas scheme and about how it is a significant step taken by the Indian government to reduce the pending tax disputes and to provide taxpayers an opportunity to settle their disputes with the government of India.
The scheme seriously engages and aims to provide a win-win situation for both taxpayers and the government by decreasing the burden of pending litigations and providing taxpayers with an opportunity to pay their dues without any interest.
The scheme is a very good option for taxpayers who genuinely want to resolve their disputes and move ahead excluding the burden of pending litigations.
However, taxpayers should be mindful about the terms and conditions tagged alonged with the scheme and consult a tax professional before making a decision.