New Delhi: Finance ministry is working overtime to notify the direct tax amnesty scheme Vivad Se Vishwas this week when the Parliament assembles for the second part of the budget session. Last month, finance minister Nirmala Sitharaman had announced the amnesty scheme in her budget speech.
"We will notify the scheme before the festival of Holi," said a senior CBDT official.
More than 4.8 lakh direct tax disputes are pending before various forums including commissioners of appeal, Income Tax Appellate Tribunal (ITAT), High Court and Supreme Court. An amount of nearly Rs 9 lakh crore is stuck in these cases and the government hopes to mop up more than Rs 2 lakh crore through the amnesty scheme.
In her budget speech, Nirmala Sitharaman said that a taxpayer would only need to pay the disputed tax and he will get complete waiver from paying any interest or penalty if he pays before March 31.
Read: Union cabinet okays changes in 'Vivad se Vishwas' Bill
The government is hoping to get a sizeable revenue from the scheme in this financial year that ends on March 31. It will reduce the revenue deficit as the Union government's tax collection in this fiscal is expected to be lower by Rs 2.5 lakh crore than its budget estimates.
However, the direct tax amnesty scheme will remain open till June end but the taxpayers availing the scheme after this month will have to pay extra amount in addition to the full payment of tax dues.
The scheme will cover all tax disputes pending at any level except those where the prosecution has already started.
Concessional terms not available after March
Though the scheme will remain open till June 30 this year but the thrust of tax machinery is to mop up maximum revenue in the current financial year.
According to reports, the CBDT has asked the tax official to work during the weekends to ensure that the targets under the scheme are fully met.
Read: Vivad Se Vishwas Scheme: Taxpayer's delight but time window appears to be narrow
It has also conveyed to the field officers that their performance appraisal will be linked with their performance in implementing the Vivad Se Vishwas (no dispute but trust) scheme.
"We will not extend the concessional terms beyond March," the senior CBDT official cited above told ETV Bharat.
He clarified that the government can do so as there is no legislative hurdle in extension of the deadline for concessional terms beyond March but the government is reluctant to do so.
Some experts have raised the question of limited window available for availing the scheme as even if the scheme is notified this week, it will leave less than a month for the taxpayers.
"The details of the scheme are already in the public domain. And the taxpayers those who want to avail the scheme would have already done their ground work," he said.
Read: 'Vivad se Vishwas' scheme offers fair deal to settle past direct tax disputes: CBDT chief
