Parliament passed Direct Tax Vivad Se Viswas Bill, 2020

On March 14, 2020, Parliament passed the Direct Tax Vivad Se Viswas Bill, 2020. The bill aims to reduce the number of litigation that are associated with direct tax payments. The Direct Tax Vivad Se Viswas concept was introduced by the Finance Minister Nirmala Sitaraman during the Union Budget 2020-21.

Key Features of the bill

Though the bill deals with tax payments, it is in no way connected with the Income-Tax Act, 1961. However, it aims to bring the appeals filed by the Income Tax Department under the act. And for the taxpayers, the bill says that if the tax payment is made after March 31, 2020, the tax payer has to pay 110% of the disputed tax. And if the tax is paid before the date, the tax payer has to pay full amount of the disputed tax and there will be no penalty applied.

Concerns

The bill raised concerns that it treats honest and dishonest people in equal way. Also, it attracted comments for its hindi name in a country which is diversified culturally to great extent. However, the English version of the bill is “No Dispute, But Only Trust”

Month: Current Affairs - March, 2020