{"id":29020,"date":"2020-02-19T11:40:07","date_gmt":"2020-02-19T06:10:07","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=29020"},"modified":"2020-03-12T12:30:21","modified_gmt":"2020-03-12T07:00:21","slug":"vivad-se-vishwas-scheme-objective-mechanism-and-benefits","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/vivad-se-vishwas-scheme-objective-mechanism-and-benefits\/","title":{"rendered":"Vivad Se Vishwas Scheme: Objective, Mechanism and Benefits"},"content":{"rendered":"

The Union Finance Minister Ms. Nirmala Sitharaman during her budget speech delivered on February 1, 2020, announced the launch of an amnesty scheme named ‘Vivad Se Vishwas<\/strong>– A Dispute Resolution Scheme 2020′. This scheme proposed by the Finance Minister of India<\/a> aims to reduce the number of ongoing legal disputes in the domain of direct taxation. The proposed scheme offers a once in a lifetime opportunity to settle the unresolved issues pertaining to the Direct Tax regime in a simple and speedy manner.<\/p>\n\n\n\n

Under the scheme, those taxpayers whose tax demands are caught up in disputes in various forums, can pay due taxes by March 31, 2020, and get a complete waiver of any interest or penalty. Although the scheme is open till June 30, 2020, however, some penalty may be charged if you fail to avail of the scheme before March 31, 2020.<\/p>\n\n\n\n

The Finance Minister,\nin her budget speech, said that:<\/p>\n\n\n\n

Currently there are 4,83,000 direct tax cases pending in various appellate forums, i.e. CIT, ITAT, High Court and Apex Court. Sabka Vikas Scheme introduced in indirect tax in the last budget has resulted into the settlement of 1,89,000 Cases.”<\/i><\/strong><\/div>\n\n\n\n
“This year, I propose to bring a scheme similar to the indirect tax Sabka Vikas for reducing litigation even in the direct tax.”<\/i><\/strong><\/div>\n\n\n\n

Key Objective of\nVivad Se Vishwas Scheme<\/h2>\n\n\n\n

The core objective of\nthe scheme launched by the FM is to provide a mechanism for resolution of\npending tax disputes related to income tax and corporation tax. The proposed\nscheme aims to resolve 4,83,000 direct tax-related disputes pending in several\nappellate forums, namely, Commissioner (Appeals), Income Tax Appellate Tribunal\n(ITAT), High Court and Supreme Court. The scheme is expected to settle a\nsignificant number of these cases.<\/p>\n\n\n\n

Moreover, the\ngovernment has been witnessing a big shortfall in revenues, especially tax\nrevenues. The Direct Tax collections of CBDT have been lower than the budget\ntargets set by the government. Therefore, the proposed scheme of resolving\npending tax disputes also aims at addressing the revenue shortfall and hence\nincreases the revenues of the government.<\/p>\n\n\n\n

Mechanism of Vivad\nSe Vishwas Scheme<\/h2>\n\n\n\n