Vivad Se Vishwas Scheme

In News

The Central Board of Direct Taxes (CBDT) has settled tax disputes in more than 133,000 pleas made under the Vivad Se Vishwas scheme.

About Vivad Se Vishwas scheme

• It was launched in 2020 after the approval of the Parliament with the objective of reducing litigation.
• It provides for settlement of disputed tax, disputed interest, disputed penalty or disputed fees in relation to an assessment or reassessment order.
• The dispute is settled on payment of 100% of the disputed tax and 25% of the disputed penalty or interest or fee.
• 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.

• Disputes related to wealth, securities transaction, commodities transaction tax, and the equalisation levy are not covered under the scheme
• The scheme started on March 17, 2020 and closed on March 31 this year. However, taxpayers, who have already made declarations within the stipulated deadline of March 31, can make payments without any penalty or interest up to April 30, 2021.

Progress Made so far

• Vivad Se Vishwas scheme fetching ?54,005 crores to the exchequer.
  • 51% of which are from the central PSUs, Central Board of Direct Taxes (CBDT).

• The scheme has achieved its purpose. It has helped in settling disputes, which was the focus area, more than the collection of revenue.

Source :IE