Govt may extend Vivad se Vishwas tax settlement deadline to Sept 30: Report

The Centre may extend the June 30 deadline for its direct tax dispute resolution Vivad se Vishwas scheme in the wake of the coronavirus outbreak and a nationwide lockdown.

The scheme may be extended to September 30, a report by Business Standard said.

Moneycontrol could not independently verify the story.

India is in the final week of the lockdown that ends is to be lifted on May 4.

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The government on March 24 said tax disputes can be settled before June 30 without attracting any interest and penalty.

Earlier, a 10 percent penalty was to be charged if a dispute was settled after March 31 but before the scheme closed on June 30.

The revenue department has not received a single deposit due to the viral outbreak, Business Standard reported.

"The Centre wants to provide enough opportunity to taxpayers to avail of this one-time chance to settle disputes. But companies are witnessing negative growth and a significant reduction in cash flows due to the lockdown, which may not allow them to function fully at least till the end of the first quarter," a source told the newspaper.

The government has set a high direct tax collection target of Rs 13.19 lakh crore for FY21, 28 percent higher than the amount collected in the previous year.

If the scheme is settled 100 percent, then it could generate Rs 1.5 lakh crore, the report said.