Vivad Se Vishwas Scheme– 2020” was introduced through Finance Act, 2020 to settle pending disputes relating to direct taxes in an attempt to get release taxes of Rs nine trillion (outstanding as in Nov., 2020) in about 483000 appeals pending at various appellate forums. The basic moto behind this Scheme is to reduce the pending tax litigations and tomonetise the revenue blocked in the litigations.
This scheme provide for waiver from payment of interest and penalty as provided in the Schemeand also provide immunity from prosecution.
|PARTICULARS||DISPUTED TAX||DISPUTED PENALTY, INTEREST AND FEES|
|If payment is made on or before 31st Dec 2020||
|If payment is made after 31st Dec 2020||Additional 10%
If additional 10% exceeds interest and penalty, excess shall be ignorned
If additional 5% exceeds interest and penalty, excess shall be ignorned