The Finance Minister Nirmala Sitharaman made an important announcement in the Union Budget 2020. A new scheme called Vivad se Vishwas scheme would be launched to resolve all pending tax disputes. This scheme looks to build on the success of the ‘Sabka Vishwas Scheme’.
The Vivad se Vishwas scheme is really simple to understand. It offers a complete waiver to taxpayers on both interest and penalty if they pay pending taxes by March 31st 2020. This helps people whose tax demands are locked in disputes in multiple forums.
Want to know more on investment Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
See Also: Foreign portfolio investments in India
There are some prominent exclusions:
You would have to submit withdrawal proof of appeal/writ with intimation of payment. This is before the issuance of the final certificate or order for settling the dispute.
See Also: 5 Good Investments for the Year 2020
The Vivad se Vishwas Scheme bill looks at two kinds of appeals.
If the taxpayer files an appeal; and if the payment is made by March 31st then you will have to pay the full amount of disputed tax. Its 125% of the disputed tax for cases related to search. There’s no interest or penalty. If the dispute is only related to penalty, interest or fee, then only 25% must be paid.
See Also: How to Get Rich in New Year 2020?
Under the second category of appeal, the amount gets halved if payments are made by March 31st 2020. The declarants would have to pay 50% of the disputed tax. Its 62.5% in case of any searches. The penalty and interest gets waived. If the problem is only vis-a-vis fees, penalty or interest you will have to pay only 12.5% on this.
You May Also Watch
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.