Income Tax authorities reach out to assessees to avail Vivad Se Vishwas Scheme before deadline: Report

Income-Tax (I-T) officials across India have begun pushing individuals and corporates to sort out their disputes with the I-T Department through the Centre’s flagship Vivad Se Vishwas Scheme (VSVS) before it ends this month.

Officials have taken to calling, emailing and sending letters to individuals and even corporates encouraging them to avail the scheme to settle direct tax disputes with the department, The Economic Times.

“Reaching out to key litigants and our counterparts where we are in litigation is the key strategy for us, so that they can pay up 50 percent and withdraw,” an official told the paper.

Moneycontrol could not independently verify the report.

The source said assessing officers have identified cases – where the interest component is high and where the Department has filed appeals – i.e. cases which have been challenged in tax tribunal or High Courts, to reach out to the concerned parties in time for possible settlement.

An official from Chennai said the strategy is to persuade assessees – including corporates and public sector units (PSUs) to settle.

The scheme has so far brought in about Rs 72,000 crore in the government's kitty in the form of resolution, Moneycontrol reported on December 9.

The scheme was launched in March this year but due to the pandemic, the due date for filing requests has been extended till the end of December and companies have time till the end of March 2021 to make the payment without additional charges.