Economy

IT Dept sets July 15 to dispose Vivad se Viswas matter

Shishir Sinha New Delhi | Updated on June 14, 2021

Last date for payment under the scheme is June 30

Income Tax Department has set the deadline for disposing Vivad se Viswas matter as July 15. It has also set July 31 as the timeline for different Tax Deducted at Sources matter.

In its interim action plan, as seen by BusinessLine, the Central Board of Direct Taxes (CBDT) has set key result areas for achievement within a set timeline. Accordingly, a time frame for disposal of Vivad se Viswas matter at Principal Chief Commissioner of Income Tax, Chief Commissioner of Income Tax, Principal Commissioner of Income Tax or Commissioner of Income Tax has been set at July 15. Similarly, it has been said that appeals under the scheme should be disposed within one week of receipt of Form 5. This form is related with order for full and final settlement of disputes.

These timelines are critical as under the scheme, extended last date for depositing amount payable without any additional amount is going to end on June 30. Declaration under the scheme was allowed till March 31. The scheme, was part of Budget 2020-21, and was implemented through an Act. It was brought to provide mechanism for resolution of pending tax disputes.

The scheme covered appeals filed by taxpayers or the government, which are pending with the Commissioner (Appeals), Income tax Appellate Tribunal, High Court or Supreme Court as on January 31 2020, irrespective of whether demand in such cases is pending or has been paid. Under the scheme, if an issue has already been decided in favour of the assessee and the Department has gone in appeal, the disputed amount payable gets reduced by 50 per cent.

The scheme covered pending disputes as on November 30, 2019 which were over 5.10 lakh in number involving an amount of ₹9.32-lakh crore. So far, the Income Tax Department received over 1.48 lakh declarations. Till the beginning of April, it collected over ₹54,000 crore.

Tax Deducted at Sources

The action plan has also set time frame for TDS matters. Accordingly, the TDS unit has been asked to examine top 30 cases of short payment by July 31. TDS is income tax reduced from the money paid at the time of making payments such as rent, commission, professional fees, salary, interest etc. by the payer. Normally, the person receiving income is liable to pay income tax. But the government with the help of TDS provisions makes sure that income tax is deducted in advance from the payments being made by you.

Time line for disposal of all application filed by assessees under section 154 of the Income Tax Act (which allows rectification of any mistake, apparent from the record) has been set at July 31. Same date will be due date for passing of order in cases where TDS surveys have been completed and disposal of all pending application (as on June 30) for NIL or lower deduction or collection.

Published on June 14, 2021

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