Government may extend tax dispute scheme till September

NEW DELHI: The government is likely to extend its tax dispute settlement scheme Vivaad se Vishwaas, from June 30 to September 30. “The extension has been proposed after the lockdown was extended to another 18 days. It is not possible to settle it in two months. Tax officials have requested to extend the date till September 30,” a senior official with finance ministry said.

Earlier the government has extended the deadline for settling tax disputes under the Vivad se Vishwaas scheme without paying any interest and penalty to June 30, 2020 from March 31, 2020. As per the original scheme, when launched, tax dispute settlement under the scheme was to be allowed without payment of any interest or penalty only till March 31, 2020. A penalty of 10 per cent of disputed tax amount had to be paid if dispute was settled under the scheme after March 31.

The extension of the deadline will come as relief for those individuals who want to settle their tax disputes without paying additional 10 per cent penalty and also the government banking heavily on the scheme to settle dispute.