The total number of taxpayers who have opted for the Direct Tax Vivad Se Vishwas Act since its enactment is 35,074 through Form-1 (Declaration under the scheme) that have been submitted till 8th September, 2020. This was stated by Shri Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs in a written reply to a question in Rajya Sabha on 20.09.2020.
Giving more details, the Minister further said that the revenue generated till date through the Act is Rs. 9,538 crore. This figure does not include the payments made by the taxpayers who are yet to file their declarations under the Scheme. The time-limit for filing of declaration under the scheme has been extended till 31st December, 2020.
The Finance Minister Nimala Sitaraman had announced the direct tax amnesty scheme Vivad Se Vishwas (No dispute but Trust) while presenting the Union Budget 2020 on February 1, 2020.
As per the government, there are 4,83,000 direct tax cases pending in various appellate forums such as Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), High Courts and Supreme Court and involves tax amount of Rs 9.5 lakh crore in disputes. The government aims to collect Rs 1.5 lakh crores from the scheme.
The scheme provides an opportunity to all the eligible taxpayers to save energy, time and cost since litigation involves enough time and money in settling cases and tax disputes.
Under the amnesty scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get a complete waiver of interest and penalty provided. Further, in search cases, the amount payable is 125% of the disputed tax compared to 100% in non-search cases.
For disputed penalty, interest and fee, the taxpayer would be required to pay only 25 percent of the same for settling the dispute.
In case the matter is decided in favour of the taxpayer, the payment of disputed tax is half of the normal rates.
The above rate of payment shall remain valid if paid by 31st March, 2020. In case it is paid after 31st March but before the end date of the scheme, a higher 10 percentage point of normal rate is required to be paid.
On 17.03.2020, The Direct Tax Vivad se Vishwas Act, 2020 (DTVsV) has received the assent of the Hon'ble President of India after which the bill was notified as The Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020). Thereafter, vide Notification No. 18/2020 dated 18.03.2020, CBDT notified the Rules and Forms under the DTVsV Act, 2020.
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