Tax dept allows revision of declarations under ‘Vivad Se Vishwas’ scheme

Issuing a established of FAQs on ‘Vivad Se Vishwas’ scheme, the Central Board of Immediate Taxes (CBDT) also claimed the scheme cannot be availed in a scenario the place proceedings are pending prior to Earnings Tax Settlement Fee (ITSC) or the place writ has been filed versus the get of ITSC.

The CBDT also clarified that in a scenario the place Mutual Settlement Treatment (MAP) resolution is pending or the assessee has not acknowledged MAP conclusion, the similar charm shall be qualified below ‘Vivad se Vishwas’.

“In such scenario, the declarant will be essential to withdraw both equally MAP software and charm,” it extra.

The I-T section also clarified that a taxpayer would be qualified for making declarations in circumstances the place the Authority for Progress Ruling (AAR) has ruled in favour of the taxpayer and the section has filed charm prior to the Significant Court/Supreme Court and the full earnings of the taxpayer was quantified prior to AAR.

“Sure, the taxpayer is qualified due to the fact the earnings is quantifiable. In such scenario, due to the fact the challenge is included in favour of taxpayer, only fifty for each cent of the disputed tax is payable,” the CBDT claimed.

The governing administration had in Oct extended for the 3rd time the deadline for making payment below the immediate tax dispute settlement scheme ‘Vivad Se Vishwas’ by three months to March 31, 2021, in watch of the ongoing COVID-19 pandemic. Even so, declarations have to be filed by December 31, 2020.

Nangia Andersen LLP Partner Sandeep Jhunjhunwala claimed the provision of revision would allow the taxpayer to revise the software filed in scenario the make a difference is revisited on account of any glitches or factual clarifications.

“The authorities are making certain that the scheme is utilised by greatest amount of taxpayers and as the scheme is new, this provision enabling revision prior to the certificate is issued would equip the applicant to revise the software in scenario any glitches are learned or any clarification is subsequently acquired from the Authorities alone, he extra.

Until November 17, the governing administration had garnered Rs seventy two,480 crore tax by means of the scheme.

A full of forty five,855 declarations were being filed below the scheme, involving disputed tax demand of Rs 31,734 crore until November 17.

Besides, central community sector corporations are also settling their dispute totalling Rs 1 lakh crore below the scheme.

The scheme gives for settlement of disputed tax, disputed interest, disputed penalty or disputed fees in relation to an assessment or reassessment get on payment of a hundred for each cent of the disputed tax and twenty five for each cent of the disputed penalty or interest or cost.

The taxpayer is granted Immunity from levy of interest, penalty and establishment of any proceeding for prosecution for any offence below the Earnings-tax Act in regard of matters included in the declaration.

The Immediate Tax Vivad se Vishwas Act, 2020 was enacted on March 17, 2020 to settle immediate tax disputes locked up in a variety of appellate forum.

In get to give additional time to taxpayers to settle disputes, earlier the date for submitting declaration and making payment without having added amount below Vivad se Vishwas was extended from March 31, 2020 to June thirty, 2020.

Afterwards once again, this date was extended additional to December 31, 2020.

Thus, earlier both equally the declaration and the payment without having added amount below the Vivad se Vishwas were being essential to be built by December 31, 2020.

The payment date has due to the fact being extended to March 2021.

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