The Central Board of Direct Taxes (CBDT) on Thursday issued Frequently Asked Questions (FAQs) on the Direct Tax 'Vivad Se Vishwas' scheme to provide clarity about the various provisions contained in the scheme.
'Vivad Se Vishwas' scheme was announced during the Union Budget, 2020 to provide for dispute resolution in respect of pending income tax litigation.
Pursuant to the Budget announcement, the Direct Tax Vivad se Vishwas Bill, 2020 (hereinafter called Vivad se Vishwas) was introduced in the Lok Sabha on February 5, 2020, and passed by it on March 4.
According to a press release issued by the Ministry of Finance, after the introduction of Vivad se Vishwas in Lok Sabha, several queries have been received from the stakeholders seeking clarifications in respect of various provisions contained in the Scheme.
After considering various queries received from stakeholders, CBDT has clarified the same in the form of answers to frequently asked questions (FAQs).
The FAQs contain clarifications on scope and eligibility, calculation of disputed tax, procedure related to payment of disputed tax and consequential benefits to the declarant. These FAQs are available on the official website of the Income Tax Department at: https://www.incometaxindia.gov.in/communications/circular/circular_no_7_2020.pdf.
"It is reiterated that these clarifications are, however, subject to approval and passing of Vivad se Vishwas by the Parliament and receiving the assent of the President of India," read the press release.
"The objective of Vivad se Vishwas is to inter alia reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process," it read.