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Vivad se Vishwas scheme: Settlement, a fact-intensive decision

From taxpayers' point of view, this scheme provides a good window of opportunity to reduce litigation and it must be evaluated positively.

Topics
taxpayer | litigation | CBDT

Raju Kumar 

Raju Kumar

is not a novel term when it comes to the administration of taxes, and more often than not it arises because of the difference of on the computation of the fair amount of taxes due from taxpayers. In the Indian context, according to the government’s data, an estimated amount of approximately Rs 9.32 trillion as on November 30, 2019, was locked in direct tax in around 483,000 direct-tax cases pending in various appellate fora. Taking cognizance of this fact and the consequential impact these litigations have in the form of pressure on the judiciary, the cost to the and delay in collection of disputed tax liability, the finance minister introduced a direct tax amnesty scheme, named the Vivad Se Vishwas (VSV) Scheme, in the Budget 2020-2021. The scheme provides for a mechanism for settling pending under the Income-tax Act, 1961. The FM has attempted to hit the bull's eye by trying to tackle two prominent issues together -- to compensate forgone tax revenue and to reduce direct tax litigation pending in various appellate fora.

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First Published: Sun, March 15 2020. 20:59 IST
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