By Swastika Saxena
The Vivad se Vishwas scheme was announced by Union Finance Minister Nirmala Sitharaman during her budget speech on February 1, 2020. The scheme aims to settle the huge number of pending direct tax cases.But it seems like the advantages , this scheme throws over to general public will not be applicable for the people under prosecution.
The scheme allows the citizens to pay their taxes by March 31,2020 but if incase public is unable to do so, they can proceed with the payment even after March 31, 2020 until June 30,2020 with 10% more tax.
The Central Board Direct Tax(CBDT) on Wednesday, clarified, taxpayers wil not be able to avail the benefits under the scheme where prosecution has been instituted.
It also stated, that under cases where initiation of prosecution has been issued without prosecution being instituted , the assessee is eligible to file the declaration under the scheme. However, where the prosecution has been instituted with respect to an assessment year, assessee is not eligible to file the declaration,. unless the prosecution is compounded before filing the declaration.”
The Circular even clarifies that the Scheme is not available for disputes pending before Authority of Advance Ruling, “However, if the order passed by AAR has determined the total income of an assessment year and writ against such order is pending in HC, the appellant would be eligible to apply for VIVAD SE VISHWAS Scheme”, the circular states.