With the objective of resolving pending Income Tax related disputes at various stages and enhance tax collection out of the blocked huge amount of money to the tune of more than Rupees 9 lakh crores as on date. The original draft of the scheme Vivad se Vishwas was presented in the Parliament on 5th February, 2020 which was entirely revenue favour. Now after getting huge number of suggestions from the stakeholders, the union cabinet approved the second draft of the Scheme which makes the scheme workable for those it is meant for.
(i) Search case if disputed tax is more than Rs. 5 crore
(ii) Prosecution cases under the Income-tax Act or IPC filed by the Department
(iii) Cases relating to undisclosed foreign income and assets
(iv) Cases completed on the basis of information from foreign countries
(iv) Cases covered under Narcotic Drugs and Psychotropic Substances Act, Special Courts Act, the Unlawful Activities (Prevention) Act, 1967, the Prevention of Corruption Act, the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, the Prevention of Money Laundering Act, 2002 or the Prohibition of Benami Property Transactions Act, 2016.
6 In addition to this some procedural changes is being approved by the cabinet.
Unlike a blanket tax amnesty, this scheme Vivad se Vishwas or Dispute to Trust is open to only those assesse who have contested their dispute to tax tribunals. Expectations of the Government are very high in view of the open disputes of cash deposit under demonetizations and matters related to penny stocks consist of huge tax demands at various forums.