Economy

‘Vivad se Vishwas’ scheme: FinMin mops up over ₹72,000 crore

Our Bureau New Delhi | Updated on November 18, 2020 Published on November 18, 2020

The Finance Ministry on Wednesday said that it managed to collect tax amounting to over ₹72,000 crore under the ‘Vivad se Vishwas’ scheme as on date. “A total of 45,855 declarations have been filed in Form 1 till November 17, 2020, and the disputed demand covered by these declarations amounts to ₹31,734 crore.

Also, the total disputed amount of CPSUs being settled under the scheme is ₹1,00,195 crore. So far, tax of ₹72,480 crore has been paid by the CPSUs and by taxpayers against the disputed demand under the scheme till date,” a senior Ministry official said. A review of the progress of the scheme was undertaken at a meeting on Wednesday. The scheme was launched on March 17, 2020 with the objective of reducing litigation.

It provides for settlement of disputed tax/interest/penalty/fees in relation to an assessment or a reassessment order on payment of 100 per cent of the disputed tax and 25 per cent of the disputed penalty/interest/fee.

The taxpayer is granted Immunity from levy of interest, penalty and institution of any proceeding for prosecution for any offence under the Income-tax Act in respect of matters covered in the declaration. According to officials, it has been decided to adopt a proactive approach for implementation of the Scheme by regular monitoring of issue of Form 3 to taxpayers who have filed declarations, completing any pending rectifications/ giving appeal effects for finalisation of demand, launching an e-campaign to inform taxpayers about the scheme, guiding and facilitating them in filing of declarations and removing any difficulties or problems faced by them in availing the scheme.

Consequent to declaration under the scheme and on fulfilment of conditions, all appeals are withdrawn (both by taxpayer and by department). In view of hardship being faced by taxpayers due to the pandemic situation of Covid-19, the deadline for filing of declarations under the scheme has been extended to December 31, 2020 and the deadline for payment without paying any interest and penalty has been extended to March 31, 2021.

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Published on November 18, 2020
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