Survival in Covid-19 or Tax compliances under Vivaad se Vishwas, this rush is now more to stock up on food and other essentials in today’s scenario as the country is under lockdown mode. There is another panic among taxpayers who want to meet the March 31 deadline for availing the Vivad se Vishwas scheme introduced in the Budget. Under the scheme, designed for settlement of tax disputes pending in appeal as of January 31, 2020 or where the time for filing appeal has not expired, an assessee can make a declaration electronically under the prescribed form, and within 15 days the government will verify the tax payable and raise demand. By paying the disputed tax on the disputed income, the assessee gets a waiver of interest and of any penalty that has been levied or which would be leviable on the disputed amount of income. But if the payment is made after March 31, there is an additional tax burden.
As per our experts –
“In view of the delay in enactment of this scheme by the Parliament and the impact of coronavirus, the government must extend the deadline to make it fair and viable. If the payment is made after March 31 there is an additional tax payable of 10 per cent. This just doesn’t give enough time to assessees, as the declaration form was released only on March 18. The government should give a full month at the least and should extend the deadline to April 30 for the initial beneficial rate. They have anyway not announced the last day for closure of the scheme. So, hopefully considering the current situation, chances are that this scheme shall be extended.”
To help our readers understand this scheme better, Compare Infobase’s Finance Head CA Eish Taneja has worked out an understanding of the present predicament with CA Nitin Kanwar and we are going to put in 5 series videos which are going to help you with better understanding of the scheme. This is part 2 of the series.
Coverage in Part-2
1. What is the concept of deemed appeal in this scheme?
2. What about application u/s 264 filed on or before 31/01/2020?
3. Whether the provision of deeming appeal also applies to Revision application u/s 264, since the time period of filing the application with CIT is one year?
4. What to withdraw if in the case of deeming appeal, not actually filed? Is it necessary to file with respective appellate forum and afterwards to withdraw it?
5. What is the status of order made on 31/01/2020 but order was uploaded afterwards, say 05/02/2020? What is DIN and its relevance?
6. What will be the status of appeal to be filed now, wherein the time limit to file it, expired already on or before 31/01/2020? What should be the right way of filing it?