Author: Paarth Chopra, Student at ICFAI Law School, Hyderabad
The scheme aims at providing speedy settlement of disputed cases on the part of Tax payers and the Government. It provides an opportunity of voluntary disclosure to non-compliant taxpayers. Pandemic situation at Global level has affected almost all sectors of the economy. This has made it difficult for the Central Government to achieve its expected target revenue as an outcome of this scheme. Through this paper, an attempt has been made to discuss the key aspects of the scheme and give an overview of its practical application.
Considering the success of Sabka Vishwas Scheme and analysing the amount of taxes pending in appeals, the most awaited reform in Income tax has been introduced to resolve disputed taxes. Budget 2020 has introduced Vivad se Vishwas Scheme 2020- a dispute resolution scheme for cases under Direct Tax.
Keywords: Compliance, Direct Tax, Dispute resolution, Interest, Penalty, Vivad se Vishwas.