The Finance Minister has introduced the Direct Tax Vivad se Vishwas Bill, 2020 in the Lok Sabha on 05-02-2020 for dispute resolution related to direct taxes. On 12-02-2020 has introduced certain amendments to the bill. The highlights of the revised bill are as follows:
The government proposes to widen the scope of the Bill and cover cases pending before debt recovery tribunals and also certain search and seizure cases.
The amendments grants of immunity from institution of any proceeding for prosecution for any offense under the Income Tax Act in respect of matters covered in the declaration and also provide immunity from imposition of penalty and levy of interest. In case of appeals made by the tax department, or where the I-T department has lost a case, 50% of disputed tax will have to be paid, and 12.5% more in search cases. Penalty and interest will be waived. In case the amount of penalty, interest or fee is the matter of dispute, then only 12.5% of that amount will have to be paid, while the rest will be waived off.
The amendments specify that for search cases, the limit of disputed tax of Rs 5 crore will be computed on a yearly basis.
In cases where the tax paid before filing a declaration under the Vivad Se Vishwas scheme exceeds the liability under the proposed law, the excess amount would be refunded.
Source : PRS india
