Taxation Bill

The Direct Tax Vivad se Vishwas Bill, 2020

INTRODUCED BY

Introduced by

Ms. Nirmala Sitharaman

Minister of Finance

SYNOPSIS

The Bill provides a mechanism for resolution of pending direct tax disputes related to income tax and corporation tax. Under this scheme, a person can file a pending tax amount against the immunity that the case will not get reopened in any proceeding under any law, including the IT Act.

HIGHLIGHT

Salient Points ()

Resolution for pending tax dispute

The Bill provides a mechanism for resolution of pending tax disputes related to income tax and corporation tax.

If an appeal is made by taxpayer, then the full amount disputed tax will have to be paid by 31 March 2020

Penalty to be waived off

All penalty and interest will be waived off if paid before 31 March 2020

25% amount will be paid if tax/interest/fees are the matter of dispute

Grant of Immunity to taxpayer

No legal proceedings for prosecution for any offence under the Income Tax Act in respect of matters covered in the declaration

No levy of Penalty or Interest once the dispute is settled. Such matters cannot be reopened

BACKGROUND

Background Basics ()

9.32 lakh crore amount is unsettled under disputed tax

4.8 Lakh disputed cases pending before appellate forum (the Supreme Court, the High Courts, the Income Tax Appellate Tribunals, and the Commissioner)

Need to reduce the litigation expenditure for the government and generate revenue through direct taxes.

KEY STATS

Key Stats ()

Tax dispute Amount which needs to be resolved

9.32 Lakh Crore

Aims to achieve ambitious target by 2024-25

$5 Trillion

Taxes collected in two months through Sabka Vishwas Yojana

40,000 crore

TIMELINES

05 Feb 2020
04 Mar 2020
13 Mar 2020

WHY (as per the govt)

Salient Points ()

90%-95% income tax disputed cases are expected to get resolved

It will help to curb frauds in the tax system

This bill will protect the interests of entrepreneurs who pay tax honestly

MEDIA SAYING

VIDEOS

Videos ()

FAQS

Yes, all penalty and interest will be waived if paid before 31 March 2020.  Exception – 25% amount will be paid if tax/interest/fees is the matter of dispute

Taxpayer is immune from paying any tax/penalty/interest post the matter is resolved

No, once the case is settled, no file can be reopened by anyone

ORIGINAL BILL

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