Union Finance Minister Smt. Nirmala Sitharaman on February 5, 2020 introduced ‘The Direct Tax Vivad se Vishwas Bill, 2020’ in the Lok Sabha to provide for a mechanism to settle disputed tax cases to the tune of ₹9.32 lakh crore.
Facts
- The Bill aims at resolving direct tax related disputes in a speedy manner.
- Under the Vivad Se Vishwas scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty provided he pays by 31st March, 2020.
- Those who avail this scheme after 31st March, 2020 will have to pay some additional amount.
- In her Budget speech on February 1, 2020, Finance Minister had said that “in the past our Government has taken several measures to reduce tax litigations.
- In 2019-20 budget, “Sabka Vishwas Scheme” was brought in to reduce litigation in indirect taxes. It resulted in settling over 1,89,000 cases.
- Now the Vivad se Vishwas Scheme has been proposed in 2020-21 Budget, which was to do for direct tax related disputes exactly what Sabka Vishwas did for indirect tax related disputes.
Controversy and opposition
- Shashi Tharoor: The bill equates an honest tax payer with the dishonest tax payer and violates the principle of equality.
- Adhir Ranjan Chowdhury: The Direct Tax Vivad Se Vishwas Bill, 2020 violates parliamentary tradition by using Hindi and English language.
