Finance Minister Nirmala Sitharaman has introduced a Bill in Lok Sabha to resolve direct tax disputes. It is called the Direct Tax Vivad se Vishwas Bill, 2020. As on November 30, 2019, the aggregate amount of taxes under dispute is Rs. 9.32 lakh crore.
The Bill offers a waiver of interest, penalty and prosecution for settlement of these disputes. It offers a complete waiver of interest and penalty for payments made by March 31.
For payments made from April 1, an additional 10% of the disputed amount will need to be paid. The Bill proposes to settle 4.83 lakh direct tax cases pending at various appellate forums. The government expects to resolve 90% of the income tax disputes through this scheme.
Income tax cases being arbitrated abroad can also be settled under this scheme.
