News: Finance Minister introduced Direct Tax Vivad Se Vishwas Bill, 2020, in the Lok Sabha
Direct Tax Vivad Se Vishwas Bill, 2020
Aim: Settle pending cases on direct taxes involving Rs 9.32 lakh crore
- Two main components:
o Dispute resolution: Reducing tax litigations pending at various forums.
o Amnesty Component: taxpayers given the opportunity to pay the disputed tax and be free from any other consequence under the law.
- Taxpayers whose tax demands are locked in dispute in multiple forums can pay due taxes by March 31, 2020, and get a a complete waiver of interest and penalty.
- Those who avail this scheme after that will have to pay 10% more tax. The scheme will remain open till June 30, 2020.
Indirect Tax, Sabka Vishwas Scheme: Introduced in 2019, it sought to resolve all disputes relating to the erstwhile Service Tax and Central Excise Acts (now subsumed under GST), as well as 26 other Indirect Tax enactments.