Cabinet Approves Changes In ‘Vivad Se Vishwas’ Bill For Faster Resolution In Direct Tax Litigations

The union cabinet on Wednesday approved changes in the 'Direct Tax Vivad se Vishwas Bill, 2020' with a view to increasing its scope to cover litigations pending in various debt recovery tribunals.

The Bill was introduced in the Lok Sabha earlier this month with the aim of reducing litigations related to direct taxes. It was proposed to cover tax disputes pending at the level of commissioner (appeals), Income Tax Appellate Tribunals, high courts, and the Supreme Court.

Briefing reporters in New Delhi, union minister Prakash Javadekar said it has been decided to cover disputes pending in Debt Recovery Tribunals also. He said that cases involving over Rs 9 lakh crore of direct taxes are pending in various forums.

The minister hoped that people will take advantage of the scheme to settle the tax disputes before March 31, 2020 as 10 percent more will be charged for settlement of disputes after the end of the current financial year. The cabinet meeting chaired by Prime Minister Narendra Modi also saw approval for capital infusion of Rs 2,500 crore into three state-owned general insurance companies.

These three companies are National Insurance Co. Ltd., Oriental Insurance Co. and United India Insurance Company.