Direct Tax Vivad se Vishwas (Legacy Dispute Resolution Scheme)
Tax disputes consume time, energy and resources both on the part of the Government as well as taxpayers. Moreover, they also deprive the Government of the timely collection of revenue.
The Finance Minister, Smt. Nirmala Sitharaman, in her budget speech, has proposed to bring a scheme similar to the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 to reduce the litigation in the direct taxes. This will not only benefit the exchequer to recover the blocked revenue but also the taxpayers to save time, energy and resources to be spent on unwanted litigations.
The Finance Minister has introduced the Direct Tax Vivad se Vishwas Bill, 2020 (‘the Scheme’) in the Lok Sabha on 05-02-2020 for dispute resolution related to direct taxes. Several amendments are also made in the bill.
The highlights of the revised bill are discussed in the attached document.