Union Finance Minister Nirmala Sitharaman ji introduced the Vivad Se Vishwas Scheme on 1 February 2020 during the presentation of the Union Budget, in an effort to address issues pertaining to contested taxes. The contested tax matters of direct taxpayers will be handled under this scheme. Taxpayers would only be required to pay the amount of challenged taxes under the Vivad Se Vishwas Scheme. You are not required to pay any penalties, interest, etc. In this article you get every necessary information regarding this scheme including its benefits, eligibility, documents, objective and how to apply.
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Vivad Se Vishwas Scheme
The Indian Finance Ministry introduced the Vivad Se Vishwas Scheme. The scheme has essentially been introduced for all taxpayers who are the subject of ongoing tax dispute cases. This includes all of these taxpayers who are embroiled in legal battles about the payment of direct taxes. Through this technique, all those taxpayers are excused from paying anything except the amount of taxes that are challenged.
In cases where the taxpayer contests the actual tax amount with the tax department or avoids paying the tax and is unable to pay the tax amount in order to pay the tax department’s interest or penalty, they are only permitted to pay the principal tax under this scheme. The Vivad se Vishwas Scheme was introduced to resolve tax disputes. The Income Tax Department can get at least the basic tax amount, free of interest and penalties by using this system to allow taxpayers to pay the disputed tax amount.
Overview Of Vivad Se Vishwas Scheme
| Name of the scheme | Vivad Se Vishwas Scheme |
| Launched by | Union Finance Minister Nirmala Sitharaman |
| Beneficiaires | Income tax payers |
| Objective | To provide relief in the pending disputed return process |
| Official website | epi.gov.in |
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Objective Of Vivad Se Vishwas Scheme
The primary goal of the scheme is to bring the long-overdue disputed tax within the jurisdiction of the Indian Tax Department, hence providing assistance to taxpayers in the delayed disputed return process. Taxpayers may only pay taxes online as of late because the Finance Ministry turned all tax facilities faceless a while ago. Many people in this situation make small mistakes when completing the online income tax form. They suffer interest or a penalty from the Income Tax Department for their failure to complete the return form on time.
Benefits Of Vivad Se Vishwas Scheme
- The nation’s direct tax payment lawsuit has significantly decreased as a result of the Vivad Se Vishwas Scheme.
- This approach is helping to address long pending disputes over direct taxpayers claims which helps with income tax collection.
- This plan is proving to be quite advantageous for income tax payers as well since it relieves them of the need to pay tax and interest on disputed and delayed payments.
- Due to this approach, contentious problems are now settled, saving taxpayers from the inconveniences of litigation.
- This program has improved communication between the Income Tax Department and Indian taxpayers, which has increased taxpayer trust in the government.
- Long-pending contested tax issues are now being addressed as a result of the Income Tax Department and taxpayers having more openness under the scheme.
- Because they are only required to pay the amount of contested taxes under the program, taxpayer’s confidence in the government is growing.
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Eligibility Criteria
- The scheme is only available to MSME organizations that are officially registered with the Indian government.
- The applicant’s company must be registered as an MSME in order to be eligible for the scheme.
- Only candidates whose initial contract completion or delivery time fell between 2020 and 2022 are eligible to apply under this scheme.
Required Documents
- Business registration number
- Permanent account number
- The business registration number is required if the applicant is the proprietor of a private or public firm.
- If a firm is registered under the MSME, its MSME Registration Number
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Application Process Of Vivad Se Vishwas Scheme
- First you have to visit the Official Website of the scheme.
- The homepage will appear on your screen.
- Click on the register option.
- Enter all the necessary details in the form.
- The applicant must update the payment amount and transaction information on the nodal officer’s portal upon completion of the verification process.
- The applicant can then enter all of his transactional and purchase data on the official GMSME portal.
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FAQ’s
Which appeals are permitted under the Scheme for Dispute to Trust?
The Income Tax Department hears all appeals ongoing before the Supreme Court and High Courts, RIT petitions before the Supreme Court and High Courts, and all objections filed against taxpayers nationwide under the Dispute to Trust Scheme.
What is the meaning of tax arrear?
The amount of contested tax, together with any applicable interest and penalties, is referred to as tax arrears. As an alternative, it may also allude to the contested interest, penalty or charge amount under the terms of the Income Tax Act.
When is the last day to pay the Vivad se Vishwas Scheme tax arrears?
When a taxpayer files a declaration under the Vivad se Vishwas Scheme, they must pay the tax arrears to the relevant authorities within 15 days after receiving the certificate (Form 3).
What is the official website of the scheme?
epi.gov.in