- The Central Board of Direct Taxes (CBDT) settles tax disputes in more than 133,000 pleas made under the Vivad Se Vishwas Scheme.
- CBDT Chief P.C. Mody mentioned that the scheme has achieved its purpose and has helped in settling disputes, which was the focus area.
- Mody stated that opting for the scheme was the choice of an individual taxpayer.
Tax disputes in more than 133,000 pleas made under the Vivad Se Vishwas Scheme, fetching ₹54,005 crores to the exchequer, has been settled by the Central Board of Direct Taxes (CBDT). The news was announced by the chairman of CBDT, P.C. Mody on Tuesday.
It is more than a fourth of the 510,000 disputes that existed on 31 January 2020. According to the data of the CBDT, if consideration is taken of the appeals by the tax department and taxpayer over the same taxation, then the total disputes that have been successfully concluded, based on the 133,000 pleas received, touched 148,690 or more than 29% of the total disputes.
While interacting in an interview, Mody mentioned that giving relief to many taxpayers, including firms, state-owned enterprises, and individuals, in a single scheme was a significant achievement for CBDT. He added that the purpose of the scheme was to settle disputes more than collecting revenue, and the purpose was successfully achieved. Mody stated that reducing tax litigation has been the priority for Prime Minister Narendra Modi.
In the past few years, the CBDT raised the monetary threshold for filing appeals at all forums beginning from appellate tribunals to the Supreme Court to reduce cases getting escalated. Many appeals have been withdrawn by the CBDT from courts.
Among the settled cases under the Vivas Se Vishwas Scheme, 2,255 cases belong to central and state government-owned companies and of Government agencies incorporated as boards. These accounted for receipts of ₹28,738 crores to the exchequer on settlement, a little more than half of the ₹54,005 crores received by the government under the scheme.
The total disputed tax covered by all the solved cases amounts to Rs 1 trillion. Mody mentioned that opting for the scheme was an individual choice of the taxpayer. The chief of CBDT stated, “This was a one-time scheme. Whoever wanted to take benefit of it has taken. Considering the outcome of past schemes, this has been quite a remarkable success.”
However, the main challenge of the Government is to deal with the remaining cases, a large section of which is of private sector firms and individuals, and cumulatively account for a high amount of tax demand.
On being questioned if tax recovery will take place in those cases where the law permits, Mody replied that if recovery has to take place then it has to. The CBDT chairman said that the tax authority will proceed as per law in these cases.