What is the meaning of the Vivadh Se Vishwas scheme and how will it impact tax payers? Is it an amnesty scheme?

First and foremost, this is not an amnesty scheme at all. Most of such amnesty schemes have been failures after the famous VDIS in 1997. This is all about empowering the tax payer by making the tax system put more trust in the individual. The finance minister announced the ‘Vivad Se Vishwas’ scheme for tax litigation under which only the disputed tax amount will have to be paid on or before March 31, 2020. This is specific for this year only. No interest or penalty will be charged. Those who pay after this deadline, but before June 30 will have to pay some charge, but they will still save on interest and penalty. Here are some of the key highlights of the scheme.

· The intent of the “Vivad Se Vishwas” scheme is to reduce direct tax litigation that is holding up billions of dollars of legitimate dues to the government.

· As an additional facility to the tax payer, the budget will also amend the Income Tax Act to enable faceless appeal.

These two measures are intended to unclog the system from unnecessary litigation and also give comfort to the individual tax payer by reposing more trust in them.