 "wealth tax")
With 4.83 lakh direct tax cases under litigation, the government on Saturday proposed to come out with a new scheme wherein such taxpayers can pay due taxes by March 31 and get complete waiver of interest and penalty.
The Vivad Se Vishwas' scheme announced in Budget 2020-21 by Finance Minister Nirmala Sitharaman would help in reducing litigation.
Currently, there are 4.83 lakh direct tax cases pending in various appellate forums -- Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), High Court and Supreme Court.
Under the proposed scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty provided he pays by March 31, 2020.
"Those who avail this scheme after March 31, 2020, will have to pay some additional amount. The scheme will remain open till June 30, 2020," Sitharaman said in her Budget speech.
In the last budget, the government had brought in 'Sabka Vishwas Scheme' to reduce litigation in indirect taxes. It resulted in settling over 1.89 lakh cases and the government is estimated to have collected more than Rs 39,000 crore in taxes.
