54,000 crores recovered from Vivad se Vishwas Scheme

54,000 crores recovered from Vivad se Vishwas Scheme, 1.48 lakh cases and recovered 54% of about ₹1 lakh crore amount under litigation, Central Board of Direct Taxes (CBDT) chairman Pramod Chandra Mody said on Tuesday.

Vivad se Vishwas Scheme Introduction

“The scheme has been successful as its objective was to reduce pending income tax litigation, generate timely revenue and provide taxpayers peace of mind,” he said. The scheme started on March 17, 2020 and closed on March 31 this year. However, taxpayers, who have already made declarations within the stipulated deadline of March 31, can make payments without any penalty or interest up to April 30, 2021.

The Vivad se Vishwas scheme provides for the settlement of disputed tax, interest, penalty, or fees in relation to an assessment or reassessment order. It grants immunity to taxpayers 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 official data, the government received a total of 1,33,837 applications under the scheme, involving a total of 1,48,690 disputes. 1,45,237 disputes were related to appeals by assesses and 3,453 were related to appeals by the income-tax department.

As on January 31, 2020, there were over 5.10 lakh litigations pending in various forums involving over ₹19.5 lakh crore. CBDT chairman Mody said that disputes over assessments were the root cause of litigation and technology and faceless assessments were making the process more objective, which was likely to reduce disputes.

Leave a Comment

Your email address will not be published. Required fields are marked *