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Monday, March 01, 2021

‘Vivad se Vishwas: 24.5% of tax disputes opt for settlement’

The scheme, enacted in March last year, provides for settlement of disputed tax, disputed interest, disputed penalty or disputed fees in relation to an assessment or reassessment order on payment of 100 per cent of the disputed tax

By: ENS Economic Bureau | New Delhi |
February 7, 2021 1:06:06 am
Vivad se Vishwas, Vivad se Vishwas scheme, Vivad se Vishwas tax disputes, business news, indian express newsTill December 31, about 96,000 cases had come having a disputed amount of Rs 83,000 crore. (Representational)

Disputes worth Rs 97,000 crore have opted for resolution under the direct tax dispute resolution scheme Vivad se Vishwas. In terms of the number of cases, about a quarter of over 5.10 lakh tax disputes have opted for settlement under the scheme, a Revenue Department official said.

As many as 1,25,144 cases have so far opted for the Vivad se Vishwas Scheme, which is 24.5 per cent of the 5,10,491 cases that were pending at different legal fora, the official said.

Comparing with earlier schemes, the official said that the Vivad se Vishwas Scheme has received 15 times the response as against the responses received under the earlier Direct Tax Dispute Resolution Scheme, 2016 (DTDRS), and with regard to the settled disputed amount, it is 153 times of DTDRS. As per government data, the Kar Vivad Samadhan Scheme (KVS) Scheme of 1998 could gather Rs 739 crore with some thousand cases, while the 2016’s DTDR Scheme resolved 8,600 odd cases involving an amount of Rs 631 crore.

The Budget has now announced setting up of the Dispute Resolution Committee (DRC) announced, which will take the Vivad se Vishwas Scheme further, the official said. Under DRC, further impetus is to be provided to resolve the litigations in the best interest of the small taxpayers in a Tax Lok Adalat format which would bring transparency and accountability in a faceless manner, he said.

The last date for filing declaration under the Vivad se Vishwas scheme has been extended till February 28, while for paying the disputed tax the date is March 31.

The government had earlier extended the payment deadline for the scheme by three months till March 31 in view of the pandemic, keeping the deadline for making declarations under the scheme to be December 31.

Explained

15 times the response of earlier scheme

Compared to earlier schemes, the Vivad se Vishwas Scheme has received 15 times the response as against the responses received under the earlier Direct Tax Dispute Resolution Scheme, 2016 (DTDRS), and with regard to the settled disputed amount, it is 153 times of DTDRS. As per government data, the Kar Vivad Samadhan Scheme (KVS) Scheme of 1998 could gather Rs 739 crore with some thousand cases, while the 2016’s DTDR Scheme resolved 8,600 odd cases involving an amount of Rs 631 crore.

The scheme, enacted in March last year, provides for settlement of disputed tax, disputed interest, disputed penalty or disputed fees in relation to an assessment or reassessment order on payment of 100 per cent of the disputed tax and 25 per cent of the disputed penalty or interest or fee. The tax department would also require to issue refunds in some of the cases settled under the dispute resolution scheme.

The taxpayer is granted immunity from levy of interest, penalty and institution of any proceeding for prosecution for any offence under the Income Tax Act in respect of matters covered in the declaration.

As per the previous figures released for the scheme in November, the tax department had said it had garnered Rs 72,480 crore under the scheme. Out of the total disputed amount of Rs 1.32 lakh crore covered by the declarations under the scheme so far, the share of CPSUs was estimated to be nearly 76 per cent. 45,855 declarations have been filed by taxpayers under the scheme, involving disputed tax demand of Rs 31,734 crore till November 17, while disputed amount of CPSUs being settled under the scheme was Rs 1,00,195 crore. Till December 31, about 96,000 cases had come having a disputed amount of Rs 83,000 crore.

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