{"id":6482,"date":"2020-02-08T13:32:03","date_gmt":"2020-02-08T08:02:03","guid":{"rendered":"http:\/\/itatonline.org\/articles_new\/?p=6482"},"modified":"2020-02-08T13:32:03","modified_gmt":"2020-02-08T08:02:03","slug":"analysis-of-the-direct-tax-vivad-se-vishwas-bill-2020","status":"publish","type":"post","link":"https:\/\/itatonline.org\/articles_new\/analysis-of-the-direct-tax-vivad-se-vishwas-bill-2020\/","title":{"rendered":"Analysis Of The Direct Tax Vivad Se Vishwas Bill, 2020"},"content":{"rendered":"

\"\" CA Ashish Chadha has conducted an expert analysis of the The Direct Tax Vivad se Vishwas Bill, 2020<\/a> and explained all of its salient features. He has also highlighted potential controversial issues arising out of the scheme which need further deliberation <\/strong> <\/p>\n

Conforming the declaration made by the Finance Minister, Smt. Nirmala Sitharaman in the budget speech, the Government has formally presented "The Direct Tax Vivad se Vishwas Bill, 2020<\/a><\/em>" (‘Vivad se Vishwas Scheme’ or ‘the scheme’) on 5 February 2020 before the Parliament.The Vivad se Vishwas Scheme aims to provide resolution of pending direct tax disputes. The provisions of the Vivad se Vishwas Scheme are applicable in cases where appeals have been filed by the taxpayers or the income-tax authority, which are pending before the Commissioner of Income-tax (Appeals) [‘CIT(A)’], Income-tax Appellate Tribunal (‘ITAT’), High Court or Supreme Court as on the 31st day of January 2020, irrespective of whether the demand in such cases is pending or has been paid.<\/p>\n

<\/p>\n

Some of the notable attributes of the Vivad se Vishwas Scheme are as under:<\/p>\n

\n•\tA declaration shall be filed by the declarant before the designated authority, i.e. an officer not below the rank of Commissioner of Income-tax in the form and manner prescribed.<\/p>\n

•\tThe amount payable by the declarant as per the Vivad se Vishwas Scheme pursuant to his declaration and the order passed by the designated authority in this regard shall be as under:\n<\/p>\n\n\n\n\n
\n

S. No.<\/strong><\/p>\n<\/td>\n

\n

Nature of dispute<\/strong><\/p>\n<\/td>\n

\n

Amount payable on or before <\/strong>31 March 2020<\/strong> <\/strong><\/p>\n<\/td>\n

\n

Amount payable on or after <\/strong>1st April 2020<\/strong> but before the last date <\/a><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

1<\/p>\n<\/td>\n

\n

Where the tax arrears are on account of disputed tax, interest on such tax and penalty on such tax<\/p>\n<\/td>\n

\n

Amount of the disputed tax<\/p>\n<\/td>\n

\n

110% of the disputed tax<\/p>\n

Note:<\/em><\/strong>If the excess 10% of disputed tax exceeds total interest and penalty on the disputed tax, the excess over such interest and penalty shall be ignored.<\/p>\n<\/td>\n<\/tr>\n

\n

2<\/p>\n<\/td>\n

\n

Where tax arrears relate to disputed interest, disputed penalty or disputed fee<\/p>\n<\/td>\n

\n

25% of disputed interest, disputed penalty or disputed fee<\/p>\n<\/td>\n

\n

30% of disputed interest, disputed penalty or disputed fee<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

•\tAs per the provisions of the Vivad se Vishwas Scheme, the amount of disputed tax which must be paid by the declarant shall also include the imputed tax on the reduction of loss resulting from the dispute.<\/p>\n

\n •\tAll direct tax appeals pending as on 31st January 2020 (also including appeals in respect of interest and penalty) are eligible for resolution under this Vivad se Vishwas Scheme, subject to certain exceptions prescribed.<\/p>\n

•\tAs per the provisions of the Vivad se Vishwas Scheme, the benefit of the scheme shall not be applicable in the following cases:<\/p>\n

(a)\tTax arrears in relation to an Assessment Year (‘AY’) in respect of which assessment is made under Section 153A or 153C of the Income-tax Act 1961 (‘the Act’);<\/p>\n

(b)\tTax arrears in relation to an AY for which prosecution has been instituted before filing of declaration;<\/p>\n

(c)\tTax arrears in relation to undisclosed income from source outside India or undisclosed asset outside India;<\/p>\n

(d)\tTax arrears in relation to assessment\/ reassessment made on basis of information received under agreement referred to in Section 90 or 90A of the Act;<\/p>\n

(e)\tTax arrears in relation to an appeal pending before CIT(A), wherein a notice for enhancement of income has been issued by the CIT(A) under Section 251 of the Act.<\/p>\n

•\tThe taxpayer is required to withdraw the appeal pending before the appellate forum and is required to file a proof of such withdrawal along with the declaration.<\/p>\n

•\tThe designated authority shall determine the amount payable by the declarant and grant a certificate to the declarant within 15 days from the date of receipt of declaration. The certificate should contain the nature of tax arrears and the amount payable by the declarant.<\/p>\n

•\tThe declarant shall pay the amount determined in the certificate within 15 days of the date of its receipt and shall intimate the details of payment to the designated authority in the prescribed form.<\/p>\n

•\tThe designated authority shall, thereafter, pass an order stating that the declarant has paid the amount.<\/p>\n

Though the Vivad se Vishwas Scheme will benefit many taxpayers, however, there are certain issues arising out of the scheme which need further deliberation. Such issues are highlighted hereunder:\n<\/p>\n