Lok Sabha passes Direct Tax Vivaad Se Vishwas Bill

Lok Sabha passes Direct Tax Vivaad Se Vishwas Bill

The Lok Sabha passed the Direct Tax Vivad Se Vishwas Scheme Bill on Wednesday, opening doors for taxpayers to end pending disputes by paying the tax amount, with interest and penalties waived off, till March 31.

The bill was passed amid din without any discussion as the opposition continued its protest over the Delhi violence.

Finance minister Nirmala Sitharaman had introduced the bill on February 5 and moved significant amendments on March 2 to the scheme to make it more attractive to taxpayers, where in only half of the disputed amount will have to be paid in cases where the income-tax department has filed an appeal or has lost a case.

The scheme is aimed at releasing about Rs 9.32 lakh crore stuck in 483,000 cases across various fora including at the Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), high courts, Supreme Court and debt recovery tribunals, besides reducing needless litigation and associated expenses.

Taxpayers willing to settle disputes will be allowed a complete waiver of interest and penalty if they pay the entire amount of tax in dispute by March 31 this year, and by paying 10% more if they opt to pay by June 30.