Direct Tax Vivad Se Viswas Bill, 2020 Passed By The Parliament - What This Bill Is All About?

The Direct Tax Vivad Se Vishwas Bill, 2020 was passed by the Parliament on March 13, 2020. The Rajya Sabha approved the bill through a voice vote and passed a motion to send it back to the Lok Sabha as it is a money bill. On March 4, 2020, Lok Sabha passed the Direct Tax Vivad Se Viswas Bill, 2020. The bill aims to reduce the number of litigation that is associated with direct tax payments. The Direct Tax Vivad Se Viswas concept was introduced by the Finance Minister during the Union Budget 2020-21. The Direct Tax Vivad se Vishwas Bill, 2020 was introduced in Lok Sabha by the Minister of Finance on February 5, 2020. The Bill defines an appellant as the income tax authority, or the person, or both, whose appeal is pending before any appellate forum as on January 31, 2020. These appellate forums are the Supreme Court, the High Courts, the Income Tax Appellate Tribunals, and the Commissioner (Appeals).

The Bill proposes a resolution mechanism under which an appellant can file a declaration to the designated authority to initiate resolution of pending direct tax disputes. The last date to file such a declaration will be notified by the central government. Based on the declaration, the designated authority will determine the amount payable by the appellant against the dispute and grant a certificate, containing particulars of the amount payable, within 15 days of the receipt of the declaration. The appellant must pay this amount within 15 days of the receipt of the certificate and inform the designated authority of such payment. Such an amount will not be refundable. The Principal Chief Commissioner will designate an officer, not below the rank of a Commissioner of Income Tax, as the designated authority to manage the proposed resolution mechanism. The proposed mechanism will not cover certain disputes. These include disputes: (i) where the prosecution has been initiated before the declaration is filed, (ii) which involve persons who have been convicted or are being prosecuted for offences under certain laws (such as the Indian Penal Code), or for enforcement of civil liabilities, and (iii) involving undisclosed foreign income or assets.

Referred Source - PRS India

Disclaimer - This post is just for an information purpose, we do not claim any authenticity regarding the content of this post. If you find any content which is offensive for any reason, you are free to contact and inform us at any moment. We will consider requests to remove the content but we are not obligated to or so or to respond to you directly.

34 views0 comments
Subscribe For Latest Updates From Legal Bonanza
  • Facebook
  • YouTube
  • Instagram
  • Twitter
  • telegram-black
  • 1964408-512