UPSC Current – Vivad se Vishwas: pay by March 31
‘Vivad se Vishwas: pay by March 31
Why in News?
The government on Tuesday extended for the third time the deadline for making payment under the direct tax dispute settlement scheme ‘Vivad se Vishwas’ by three months to March 31, 202
The vivad se vishwas scheme was announced by Union Finance Minister Nirmala Sitharaman during her budget speech on February 1, 2020.
The scheme aims to settle the huge number of pending direct tax cases.
About Vivad Se Vishwas Scheme: The Direct Tax Vivad Se Vishwas Bill, 2020:
- The amnesty scheme, at present, covers disputes pending at the level of commissioner (appeals), Income Tax Appellate Tribunals (ITAT), high courts, the Supreme Court and those in international arbitration.
- It offers a complete waiver on interest and penalty to the taxpayers who pay their pending taxes by March 31.
- The scheme aims to benefit those whose tax demands are locked in dispute in multiple forums.
- If a taxpayer is not able to pay direct taxes by March 31st then, he will get further time till June 30th. However, in that case, he would have to pay 10 percent more on the tax.