â€œThe Direct Tax Vivad Se Vishwas Act, 2020â€ provides for a reduction in pending income tax litigation, generate timely revenue for the Government and instill sense of confidence in the taxpayers by providing them peace of mind, certainty and savings in terms of time and resources that would otherwise have been spent on the long-drawn and vexatious litigation process.
Subject to the provisions of the said Act, following broad categories of taxpayers are eligible:
- In whose cases litigations are pending at various appellate forums;
- Recently concluded assessment proceedings and appeals where time to file an appeal or further appeals had not expired on the specified date i.e. 31.01.2020;
- Cases of Dispute Resolution Panel (DRP) where direction u/s 144C(5) of the Income Tax Act are issued or pending or order of Assessing Officer u/s 144C(13) of the Income Tax Act is pending as on 31.01.2020.
- Applications u/s 264 of the Income Tax Act pending on 31.01.2020.
The taxpayers stand to gain following benefits subject to the conditions:
- Complete 100% waiver of interest and penalty if 100% disputed tax (125% in assessment based on 132/132A of Income Tax Act) is paid on or before 31.03.2020 with 10% increase in the payment made thereafter;
- Only 25% of the disputed amount needs to be paid on or before 31.03.2020 in disputed appeals of interest/penalty/Fees with 5% increase in the payment made thereafter;
- Only 50% and 12.5% of the disputed tax and interest/penalty respectively, needs to be paid in the pending appeals of the Income Tax Department or of the taxpayer wherein there is a decision of the superior appellate forum in favour of the taxpayer;
- A permanent end to the litigation by withdrawals of pending appeals;
- Total immunity from prosecution under the Income Tax Act.
An appeal is made to the eligible taxpayers to seize this golden opportunity by availing the benefits of the said Act and make it a grand success. The notified Act; Frequently Asked Questions (FAQs) explaining the provisions of the Act; Rules of the Act and Forms & Procedure for e-filing of the declarations are available on Income Tax Portal www.incometaxindiaefiling.gov.in or can be availed from theÂ Nodal Officer, Shri Nitin Warghat, ACIT, R. No. 106, Aayakar Bhavan, Civil Lines, elangkhedi Road, Nagpur (Telephone: 2808559, Email: firstname.lastname@example.org).
The entire procedure from the stage of filing of first declarations/undertakings till the issue of the final order of settlement by the designated authority shall be completed online without a need to visit the Income tax Office. For any query/doubt/clarification or assistance regarding the said Act the stakeholders may contact the Nodal Officer.