Vivad Se Vishwas Act, 2020 Notified; Got assent of the President on the 17th March, 2020
The Vivad Se Vishwas Act, 2020 of Parliament received the assent of the President on the 17th March, 2020, and is hereby published for general information.
In the Budget 2020-2021 Hon’ble Finance Minister Nirmala Sitharaman has announced a New Scheme in Direct Tax “Vivad Se Vishwas” likewise “Sabka Viswas-Legacy Dispute Resolution Scheme 2019” under Indirect Tax. The Act provides a mechanism for resolution of pending tax disputes related to income tax and corporation tax.
Applicability of this Scheme
The provisions of this bill are applicable to settle disputes in the cases where the appeals are filed by the taxpayers or the income tax authority, before the Commissioner (Appeals) or Income Tax tribunal or High Court or Supreme Court as on 31 Jan 2020.
The appeal may be against disputed tax, interest or penalty or against the determination of tax amount on default in respect of TDS or TCS.
The cases resolved though this scheme shall be considered final and such cases will not be reopened in any other proceeding of the Income tax act.
How this Scheme will work?
1. The taxpayers are required to file declaration before the designated authority in such form and manner, as may be prescribed by the Central Government to implement this bill Upon filing the declaration, any appeal pending before Commissioner (Appeals) or Income Tax Tribunal shall be deemed to have withdrawn from the date of receipt of certificate under section 5(1) of this Act from designated authority, where the taxpayer has filed an appeal or petition before the High Court or Supreme Court then he shall withdraw the same.
2. On receipt of the declaration, the designated Authority will determine the amount payable within 15 days of receipt of declaration and grant a certificate containing particulars of the tax arrier and the amount payable
3. The declaration shall pay the amount so determined within 15 days of receipt of the certificate and intimate the details of such payment to the designated Authority.
4. There upon the designated Authority shall pass an order stating that the declarant has paid the amount.
Following tax matters are ineligible for consideration under this scheme
- Tax matters pending under section 153A or 153C for any assessment year in relation to Search or assessment of income of any other person
- Where matters in respect of an assessment year where prosecution has been instituted on or before the date of filing declaration
- Where matters related to undisclosed income from any source or undisclosed assets located outside India
- Where matters relating to an assessment of reassessment made on the basis of information received under an agreement referred to in Section 90 or 90A of Income Tax Act.