The Parliament has given its nod to Direct Tax Vivad se Vishwas Bill, 2020.
The Bill intends to provide a one-time opportunity to end disputes related to personal income tax and corporate tax.
Under this scheme, taxpayers whose tax demands are locked in dispute in multiple forums, can pay due taxes by March 31, 2020, and get a complete waiver of interest and penalty.
For payments made after March 31 and till June 30, a 10% penalty would be charged.
However, cases above ₹5 crore have been excluded — large evasion-related and fraud cases — and they cannot take advantage of this scheme.
The scheme aims to resolve 483,000 direct tax-related disputes pending in various appellate forums.
As on the November 30, 2019, the disputed direct tax arrears amount to ₹9.32-lakh crore.
