We are pleased to present the latest edition of Tax Street – our newsletter that covers all the key developments and updates in the realm of taxation in India and across the globe for the month of February 2020.
- The 'Focus Point' covers the important highlights of the Vivad Se Vishwas Scheme that was announced in the Union Budget.
- Under the 'From the Judiciary' section, we provide in brief, the key rulings on important cases, and our take on the same.
- Our 'Tax Talk' provides key updates on the important tax-related news from India and across the globe.
- Under 'Compliance Calendar', we list down the important due dates with regard to direct tax, transfer pricing and indirect tax in the month.
Vivad Se Vishwas Scheme, 2020
In a move to reduce the pending litigations, the Union Budget 2019 had proposed 'Sabka Vishwas' scheme under indirect taxes. The said scheme turned out to be a huge success. On similar lines, Union Budget 2020 announced 'Vivad Se Vishwas' scheme to reduce 483,000 appeals pending before various appellate forums under Direct Taxes.
The scheme has been introduced with the objectives of reducing litigation that consume a substantial amount of time, energy, and resources both in the form of loss of funds and others. It is believed that the scheme will provide a resolution to the disputes and also generate timely revenue for the government.
A necessary bill following the scheme was introduced in the Parliament on 5 February 2020. As per recent reports, the government has now given a notice for moving amendments to the above bill. Such amendments are expected to be tabled when Parliament is next in session, i.e., 2 March 2020. The scheme would be put into effect only after receiving the receipt of the President's assent.
The highlights of 'The Direct Tax Vivad Se Vishwas Bill 2020' (Scheme) are as under:
What is covered under the Scheme?
Following requisitions pending on or before 31 January 2020, are eligible for closure under the Scheme:
- Appeals before any appellate forum, filed by taxpayers or the revenue authorities;
- Writ Petition or Special leave petition, filed by taxpayers or the revenue authorities;
- Objections filed before Dispute Resolution Panel ('DRP');
- Final Assessment Order pursuant to DRP directions;
- Revision Applications under section 264;
- Orders passed by AO/ lower appellate authorities on or before the above date and time limit to file the appeal is yet to expire;
- Assessments made pursuant to search/seizure (including the year of search) if the amount of disputed tax is up to INR 5 Crores;
- Appeals where enhancement of income has been proposed by CIT(A).
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