News

Deadline for tax settlement scheme may be extended

Deadline for tax settlement scheme may be extended

The deadline for the government’s ambitious direct tax settlement scheme - Vivad se Vishwas - is likely to be extended by three months till September 30.

The revenue department has not seen a single deposit, owing to the outbreak of the COVID-19 pandemic, said people in the know.

“The Centre wants to provide enough opportunity to taxpayers to avail of this one-time chance to settle disputes.

"But companies are witnessing negative growth and significant reduction in cash flows due to the lockdown, which may not allow them to function fully at least till the end of the first quarter,” said one of the persons cited above.

According to him, a bulk of the tax receipts may not happen and any extension in deadline may give companies more time to take a call.

By then, both public sector and private sector offices would have opened and the management would be able to take a more informed decision.

Top