Vivaad Se Vishwas scheme to help save time, money in fighting tax disputes, says Finance Minister Nirmala Sitharaman

New Delhi: Finance Minister Nirmala Sitharaman on Monday said the direct tax dispute resolution scheme announced in Budget will be of great help to people as they will be able to save time and money spent in fighting cases. As many as 4.83 lakh direct tax cases worth Rs 9.32 lakh crore are locked up in various appellate forums such as Commissioner (Appeals), ITAT, High Courts, Supreme Court and Debt Recovery Tribunals. “The scheme will give settlement option to all those with disputed tax… This will be of great help because people spent a lot of time and money in settling cases,” Sitharaman said while moving the Direct Tax Vivaad Se Vishwas Bill, 2020 amid a din in Lok Sabha. [caption id=“attachment_7679911” align=“alignleft” width=“380”] File image of Union Finance Minister Nirmala Sitharaman. PTI[/caption] She said the government has taken measures to reduce litigation and a similar scheme was announced for indirect tax disputes. Under the proposed scheme, taxpayers willing to settle disputes shall be allowed a complete waiver of interest and penalty if they pay the entire amount of tax in dispute by 31 March this year, following which a 10 percent additional disputed tax shall have to be paid over and above the tax liability. Further, where arrears relate to disputed interest or penalty only, then 25 percent of disputed penalty or interest shall have to be paid if the payment is made by 31 March, beyond which the same shall be enhanced to 30 percent. Also in search and seizure operations where the recovery is up to Rs 5 crore, this scheme can be availed once the Bill is passed by Parliament. The scheme would remain open till 30 June, 2020. While the minister was speaking, opposition members were in the Well shouting slogans against the government and holding placards demanding resignation of Home Minister Amit Shah over the communal violence in Delhi last week.