The government has given a big relief via an announcement on 24th March by extending the most income tax-related compliance deadlines to June 30, 2020. The main deadlines extended include:
a) Linkage of the Aadhaar with PAN
b) Making of the tax-saving investments for FY 2019-20
c) Settling the tax disputes under Vivaad se Vishwas sans interest
d) Penalty and filing of income tax returns (ITR).
All of these actions had to be completed by March 31 earlier.
Amid curfews and lockdowns due to the Covid-19 pandemic, the government has decided to extend the deadline for settling tax disputes under the Vivad se Vishwaas scheme without paying any interest and penalty from March 31, 2020, to June 30, 2020. The extension of the deadline means that individuals can now settle their tax dispute by the new deadline without paying any penalty and interest.
The government has also extended the deadlines for filing an income tax return (ITR) for FY 2018-19 to June 30, 2020, from the present one of March 31, 2020. For FY 2018-19, delayed payment for tax payments has been reduced from 12 per cent to 9 per cent. No extension, for delayed TDS deposit has been reduced from 18 per cent to 9 per cent.
Why the deadline extensions were needed?
Deadline for Vivaad se Vishwas: This is a direct tax scheme announced in the Budget 2020, for settling the tax dispute between individuals and tax department. The scheme offers complete waiver on interest and penalty to the taxpayers with a full and final settlement of the dispute. Further, if the individual opts for the scheme, then such income tax dispute cases cannot be reopened in any other proceeding by the income tax department or any other designated authority.
To help our readers understand this scheme better, Finance Head CA Eish Taneja of Compare Infobase has worked out on a range of solutions with CA Nitin Kanwar and we are going to put in five series videos which are going to help you with a better understanding of the scheme. This is part 3 of the series. You can see the 2 parts in our earlier articles.
Part-3:- Question & Answer by CA Nitin Kanwar on issues and its applicability
Questions Covered in Part 3
1. Whether revision by CIT u/s 263 is covered? And what if, on or before 31/01/2020, the matter went to
a. To High court – writ Against notice u/s 263
b. To ITAT – Against Direction of CIT
c. To CIT(A) – Against the order Of AO, giving effect to the direction of CIT
Can these cases be taken to scheme?
a. What about when the prosecution is launched against the person?
b. Whether the applicability is to be seen qua assessee or qua year?
c. Has FAQ 22 gone far ahead from the Act?
3. Search & Seizure:
a. What about search and seizure cases?
b. How is it different from the original Bill?
c. Whether the quantum has to see qua assessee or qua year? d. What about the broken period?
4. What is the status where enhancement notice has been issued by CIT(A)?
5. Cross objections in ITAT:
a. What is the difference between a cross objection and filing of appeal?
b. What will the status of cross-objections?
c. Whether one has to withdraw when one is paying 50% for withdrawing Dept. Appeal?