Parliament approves Vivad Se Vishwas Bill

New Delhi, Mar 13 () Parliament on Friday approved abill that will provide an opportunity to taxpayers to settletheir tax disputes by paying just due taxes with completewaiver of interest and penalty by March 31.

The Direct Tax Vivad Se Vishwas Bill was passed by voicevote and returned by Rajya Sabha as it was a money bill.It was approved by Lok Sabha on March 4.

The finance minister pointed out that some members hadraised issues on the bill and asked how can the Central Boardof Direct Taxes issue a circular on the scheme before passageof the bill in Parliament.

"There is no breach of privilege," she said.

The minister also told the House the end of the schemedate would be notified by the government and there is noconfusion over that.

She told the House that the scheme is to give an optionto tax payers for settling disputes.

The government would send a circular to states in alllanguages for providing detailed information about the bill.

The Direct Tax Vivad Se Vishwas Bill, 2020, which wasintroduced by the Finance Minister in Lok Sabha on March 2.

As many as 4.83 lakh direct tax cases worth Rs 9.32 lakhcrore are locked up in various appellate forums such asCommissioner (Appeals), ITAT, High Courts, Supreme Court andDebt Recovery Tribunals.

Also in search and seizure operations where the recoveryis up to Rs 5 crore, this scheme can be availed once the Billis passed by Parliament.

Under the proposed scheme, taxpayers willing to settledisputes shall be allowed a complete waiver of interest andpenalty if they pay the entire amount of tax in dispute byMarch 31 this year, following which a 10 per cent additionaldisputed tax shall have to be paid over and above the taxliability.

Further, where arrears relate to disputed interest orpenalty only, then 25 per cent of disputed penalty or interestshall have to be paid if the payment is made by March 31,beyond which the same shall be enhanced to 30 per cent.

The scheme would remain open till June 30, 2020. RSNKKSDV DV