Vivad se Vishwas scheme: Interest, penalty waived for entire scheme period
The government has extended the deadline for settling tax disputes under the Vivad se Vishwaas scheme without paying any interest and penalty to June 30, 2020 from March 31, 2020. This was announced by the Finance Minister Nirmala Sitharaman in a press conference today.
Why the extension is good news for tax litigants
The extension of the deadline will come as relief for those individuals who want to settle their tax disputes without paying additional 10 per cent penalty and interest. The extension will also give a breather to those individuals who were yet to do a cost-benefit analysis of the scheme and decide whether to opt for it or not.
What is Vivad se Vishwas scheme?
This is a direct tax scheme announced in Budget 2020, for settling tax disputes between individuals and the income tax department. Earlier, the scheme offered complete waiver on interest and penalty to the taxpayers with a full and final settlement of the dispute if the scheme was availed by March 31, 2020. An individual opting for settlement after March 31, 2020 was required to pay additional 10 per cent penalty on the disputed tax amount.