The last date has been prolonged by the union government for making payments beneath tax dispute settlement scheme Vivad se Vishwas (from dispute to trust) via April 30 to June 30, 2021, to give the relief to assessee facing the public health issues to the 2nd wave of the covid-19 pandemic.
The last date of April 30 for every other compliance like Income Tax assessment or reassessment orders and notice for reopening of cases in which income has run away assessment has also been extended by two months, a Central Board of Direct Taxes (CBDT) as per the order.
“The deadlines have been extended in view of the severe Covid-19 pandemic raging unabated across the country affecting the lives of our people, and in view of requests received from taxpayers, tax consultants and other stakeholders that various time barring dates, which were earlier extended to April 30, 2021, by various notifications may be further extended,” a finance ministry spokesperson commented.
Towards permitting an order related to any instruction of the Dispute Resolution Panel (DRP) and for sending intimation to the process of equalization levy (EL), an extended time limit is also applied. On the non-resident e-commerce firms, EL is also applicable which ends the revenue via the Indian market excluding furnishing any taxes. Beneath the policy of Vivad se Vishwas, it is also urged that the payment duration of the amount payable excluding another amount will be further prolonged to 30/06/2021.
The most effective direct tax dispute resolution policy is the Tax amnesty scheme ‘Vivad se Vishwas’ which has settled out more than 48,000 vexed cases and recovered 54% of about ₹1 lakh crore amount beneath prosecution. This was incorporated on 17/03/2020 and ends on 31st March in the same year. But the assessee who had previously built the declarations in the stipulated deadline of March 31, enabled them to furnish the payment excluding any other amount or the penalty up to 30th June.
As per the official information the government had obtained a total of 133,837 applications beneath the policy which consists of 148,690 disputes 145,237 similar to claims by the taxpayers and 3,453 with respect to appeals through the income-tax department. However the total disputed amount was Rs 1,00,437 crore, the government received ₹54,005 cr towards the debated tax.
The policy ‘Vivad se Vishwas’ gives for the settlement of the disputed tax, disputed interest, disputed penalty, or disputed fees towards the assessment or reassessment order. It permits the immunity to the assessee from the interest, penalty, and organization of any proceeding for pursuit for any crime beneath the Income-Tax Act in honor of circumstances contained in the declaration.
Central Finance minister Nirmala Sitharaman states that the policy in the central budget given on 1st Feb 2020. So to solve the legacy issues which involve direct taxes. Beneath the policy penalty and interest will be rejected if the disputed amount is furnished prior to the stipulated date. According to 31st/Jan/2020, there were over 5.10 lakh litigations due in several forums which are involved over Rs 19.5 lakh.
