Direct Tax Vivad Se Vishwas Bill introduced in Lok Sabha


New Delhi, Finance Minister Nirmala Sitharaman on Wednesday introduced a bill in Lok Sabha which seeks to provide for resolution of disputed tax. As on November 30, 2019, the amount of disputed direct tax arrears was Rs 9.32 lakh crore, she said, adding that 4.32 lakh cases were pending in courts.  She said the Direct Tax Vivad Se Vishwas Bill, 2020 emphasises on trust building.Over the years, the pendency of appeals filed by taxpayers as well as the government has increased due to fact that the number of appeals that are filed is much higher than the ones disposed.

Therefore, there are was an urgent need to provide resolution of pending tax disputes, the Minister maintained.The scheme, the Minister said, will not be an open ended scheme and can be availed for a limited time. Ms Sitharaman added that it will be a formula based solution.This will not only benefit the government by generating timely revenue, but also the taxpayers who will be able to deploy the time, energy and resources saved by opting for such resolution towards their business activities, she said.

Congress leader of the House Adhir Ranjan Chowdhury and his party member Shashi Tharoor opposed the introduction of the Bill. Mr Chowdhury objected to the Hindi name in the Bill and said only 43 per cent people understood Hindi language and said the title of the draft law should be corrected. Ms Sitharaman said two expressions were used in her Budget speech, the other name of the proposed law is 'no dispute, but trust' scheme. The tax claims will remain intact, she pointed out.