Disputed tax cases worth Rs 97,000 crore offered for settlement under Vivad Se Vishwas scheme

By: |
Updated: Feb 05, 2021 10:19 PM

So far, 1,25,144 cases have opted for the Vivad se Vishwas (VsV) Scheme, which is 24.5 per cent of the 5,10,491 cases that were pending at different legal fora, according to sources in the Department of Revenue (DoR).

Disputed tax cases worth Rs 97,000 crore offered for settlement under Vivad Se Vishwas schemeThe 1998's Kar Vivad Samadhan Scheme (KVS) Scheme could gather Rs 739 crore with just few thousand cases, while the 2016's DTDR Scheme resolved just 8,600 odd cases involving an amount of Rs 631 crore.

Disputed tax cases involving a total amount of Rs 97,000 crore have been offered for settlement under the Vivad Se Vishwas scheme, with 24.5 per cent of the long-pending dispute cases getting settled so far, sources said on Friday.

So far, 1,25,144 cases have opted for the Vivad se Vishwas (VsV) Scheme, which is 24.5 per cent of the 5,10,491 cases that were pending at different legal fora, according to sources in the Department of Revenue (DoR).

“The response to VsV Scheme has been very encouraging and so far involves the tax dispute settlement amount to the tune of more than Rs 97,000 crore,” one of the sources said.

The Vivad se Vishwas Scheme has received 15 times better response in comparison to Direct Tax Dispute Resolution Scheme, 2016 (DTDRS) and with regard to the settled disputed amount it is 153 times of DTDRS.

The 1998’s Kar Vivad Samadhan Scheme (KVS) Scheme could gather Rs 739 crore with just few thousand cases, while the 2016’s DTDR Scheme resolved just 8,600 odd cases involving an amount of Rs 631 crore.

The sources said the setting up of Dispute Resolution Committee (DRC) announced in the 2021-22 budget is in furtherance of the VsV Scheme. Under DRC, the further impetus is to be provided to resolve the litigations in the best interest of the small taxpayers in a Tax Lok Adaalat format, which would bring transparency and accountability in a faceless manner.

The last date for filing declaration under VsV scheme has been extended till February 28, while for paying the disputed tax the date is March 31.

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 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 the various appellate forum.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Govt extends deadline for filing declarations under Vivad Se Vishwas scheme till Mar 31, payment till Apr 30
2Exhausted 80C limit? You can still get tax benefits on life insurance premium this year
3Your Income Tax Queries: Which ITR form should I file to claim TDS deducted from NRO account?