The central government has so far received tax amount of Rs 72,480 crore in 45,855 cases through the Direct Tax Dispute Resolution Scheme called ‘Vivad Se Vishwas’. The total income tax amount demanded by the Income Tax Department from these cases is about Rs 1.32 lakh crore.
According to sources, the Central Public Sector Units (CPSUs) have come forward to resolve revenue dispute cases worth Rs 1 lakh crore, which has improved the possibility of the Government of India’s tax revenue collection target for the year 2019.
The amount received is the initial compulsory payment made by taxpayers who opted for the ‘Vivad Se Vishwas ‘ Scheme, as the balance can be paid by 31 March 2021. However, this tax payment deadline was extended by the government due to the Covid-19 epidemic and tax declarations are to be filed by December 31, 2020.
This Direct Tax Disputes to Trust Act, 2020 was implemented by the government on March 17, 2020 for settlement of pending direct tax disputes in various appellate forums of the country.
This scheme launched by the Government of India offers solutions for settlement of disputed interest, disputed tax, disputed charges or disputed penalty.
The scheme was initiated by the Central Government to withdraw all appeals by the Income Tax Department and taxpayers to resolve various tax matters. This scheme is more beneficial for such taxpayers against whom the Income Tax Department has appealed on a higher platform.