About the scheme

• Vivad se Vishwas scheme was announced in the budget this fiscal to provide a mechanism for the resolution of pending Income Tax disputes. 
• As on November 30, 2019, about 4.83 lakh appeals pending at various levels involving tax arrears to the tune of about ₹9.32-lakh crore. 
• The Centre hopes the new scheme will bring down the number of pending cases and result in some portion of the locked revenue being realised.
• Under the scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty provided he pays by 31st March, 2020. Those who avail this scheme after 31st March, 2020 will have to pay some additional amount. 
• In order to provide more time to taxpayers to settle disputes, earlier the date for filing declaration and making payment without additional amount was extended from March 31, 2020 to June 30, 2020. This date was again extended to December 31, 2020.

Why in News?

• The government has extended for the third time the deadline for making payment without additional amount under the ‘Vivad Se Vishwas’ by three months from 31st December 2020 to 31st March 2021.

Reference:

1. https://www.thehindubusinessline.com/economy/policy/govt-extends-payment-date-for-vivad-se-vishwas-scheme-to-march-31/article32957056.ece