A bill providing an opportunity to taxpayers to settle disputes by paying just due taxes with complete waiver of interest and penalty by March 31 was passed by the Lok Sabha amid din on Wednesday.
The Direct Tax Vivaad Se Vishwas Bill, 2020, was taken up in the House and was approved without any discussion as the opposition continued the protest over the Delhi violence issue.
The Bill was piloted by Finance Minister Nirmala Sitharaman.
As many as 4.83 lakh direct tax cases involving a huge amount of 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.
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.
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 March 31 this year, following which a 10 per cent 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 per cent of disputed penalty or interest shall have to be paid if the payment is made by March 31, beyond which the same shall be enhanced to 30 per cent.
The scheme would remain open till June 30, 2020.
It was necessary to pass the Vivaad Se Vishwas Bill at the earliest as the last date for availing waiver of interest and penalty under it is March 31. Being a Money Bill, it need not be approved by the Rajya Sabha.