Income tax: Income tax department gives big relief, extends the date of payment under dispute scheme from trust

The Income Tax Department wrote on Twitter that, “The CBDT has extended the deadline to declare the dispute under the trust law from March 31, 2020.

The Income Tax Department has made a big announcement regarding the Direct Tax Dispute Resolution Scheme ‘Dispute to Confidence’ (VSV). The department has extended the date of giving information and payment under this scheme. The Income Tax Department has extended the deadline for giving information till March 1 and the time for payment till April 30. The deadline for making announcements under this scheme was 28 February while the deadline for payment of disputed tax amount was 31 March. The purpose of the trust scheme is to resolve disputes by pending disputes.

The Income Tax Department wrote on Twitter that, “The CBDT has extended the deadline to declare the dispute under the trust law by 31 March 2020. The deadline for payment without additional amount has been increased to 30 April 2021.

CBDT further extends the date for filing of declarations under the #VivadSeVishwas Act, 2020 to 31st March, 2021.
Notification no. 09/2021 in S.O. 964(E) dated 26/02/2021 issued.
Date for payment without additional amount under VSV extended to 30th April, 2021. pic.twitter.com/vRY0eNY4Bx

— Income Tax India (@IncomeTaxIndia) February 26, 2021

Options under dispute-to-trust scheme

The units have so far opted for a trust scheme from the dispute to settle 1,25,144 cases. This is 24.5 percent of the 5,10,491 cases pending in various legal forums. In the case of disputed tax worth about 97,000 crores, this scheme has been chosen. In the context of dispute-to-trust scheme assessment provides an option to dispose of disputed tax, disputed interest, disputed penalty or disputed fee.

Who can benefit

Under this, pending cases can be settled by paying 100 percent of the disputed tax and 25 percent of the disputed penalty or interest or fee. The trust law came into force on March 17, 2020 from a direct tax dispute. Its objective is to provide an alternative to the concerned taxpayers for disposal of pending cases in various courts.

The benefit of the trust scheme from the dispute can be taken with reference to the proceedings pending before the Income Tax Settlement Commission or the writ petition filed against the order of the ITSC.

Disposal of disputed tax cases

According to revenue department sources, 1,25,144 cases have been brought under dispute under the trust scheme so far. This is 24.5 percent of the total of 5,10,491 disputed cases. These cases were pending in various courts, forums.