The government extended the deadline for making payment under the direct tax scheme Vivad Se Vishwas till June 30. This extension was mainly due to the severe COVID-19 pandemic.
According to a statement, the Central Board of Direct Taxes (CBDT) said that this extension was made due to the several representations received requesting an extension on the grounds that the various stakeholders are facing hardships.
Earlier the time limit was extended to April 30, 2021. Now, it is extended to June 30, 2021. CBBT stated, “It has also been decided that time for payment of amount payable under the Direct Tax Vivad se Vishwas Act, 2020, without an additional amount, shall be further extended to 30th June, 2021. Notifications to extend the above dates shall be issued in due course.”
This scheme is an attempt by the Government of India (GoI) to put an end to pending direct tax disputes.
The government has received Rs 53,346 crore through Vivad Se Vishwas till February 22. Over 1.28 lakh declarations have been filed under the scheme involving a disputed tax of Rs 98,328 crore. Of this, Rs 53,346 crore has been received as payments against disputed tax.
This includes Rs 27,720 crore worth payments made by the central public sector undertakings (PSUs), Rs 1,023 crore by state PSUs, and Rs 24,603 crore by others.
The Vivad Se Vishwas scheme 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 per cent of the disputed tax and 25 per cent 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.
The Direct Tax Vivad se Vishwas Act, 2020, was enacted on March 17, 2020 to settle direct tax disputes locked up in various appellate forum.
Last month, the income tax department extended the deadline for filing deceleration and making payment under direct tax dispute resolution scheme Vivad Se Vishwas till March 31 and April 30.
