A bill to provide an opportunity for taxpayers to settle their tax disputes by paying just due taxes with a complete waiver of interest and penalty by March 31 was approved by Lok Sabha on Wednesday.
The Direct Tax Vivaad Se Vishwas Bill, 2020, which was introduced by Finance Minister Nirmala Sitharaman in the House on March 2, was passed amid din.
The opposition has been protesting over the issue of Delhi violence and demanding an immediate discussion.
As many as 4.83 lakh direct tax cases worth Rs 9.32 lakh crore are locked up in various appellate forums such as Commissioner (Appeals), ITAT, High Courts, Supreme Court and Debt Recovery Tribunals.
Also in search and seizure operations where the recovery is up to Rs 5 crore, this scheme can be availed once the Bill is passed by Parliament.
Under the proposed scheme, taxpayers willing to settle disputes shall be allowed a complete waiver of interest and penalty if they pay the entire amount of tax in dispute by March 31 this year, following which a 10 percent additional disputed tax shall have to be paid over and above the tax liability.
Further, where arrears relate to disputed interest or penalty only, then 25 percent of disputed penalty or interest shall have to be paid if the payment is made by March 31, beyond which the same shall be enhanced to 30 percent.
The scheme would remain open till June 30, 2020
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