Lok Sabha Question No. 2256 (UNSTARRED), answered on 2021-03-08
Subject: Vivad Se Vishwas Scheme
Ministry: FINANCE
Asked by: Gangasandra Siddappa Basavaraj

## 2256. SHRI  G.S. Basavaraj. :

'Will the Minister of FINANCE be pleased to state:-

- (a) Whether the Vivad se Vishwas Scheme launched in 2020 has helped in mopping up tax collections from more than 1,10,000 tax payers amounting to Rs. 85,000 crores an if so, the details thereof;
- (b) Whether this is a small fraction compared to the 4.34 lakh crores in corporate taxes and Rs. 4.49 lakh crores in income taxes, locked up in litigation and if so, the details thereof; and
- (c) The details of plans on the avail for a better dispute resolution mechanism, completely faceless in its assessment process?

## ANSWER

## MINISTER OF STATE IN THE MINISTER OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a)  Yes.  A  total  of  1,28,733  Declarations have  been  filed in Form 1 till  1 st  March,  2021  by taxpayers. These include 1393 declarations by Central PSUs and 833 declarations by State PSUs/  boards.  Declarations  have  been  filed  by  taxpayers  for  resolution  of  Tax  disputes amounting to  Rs. 98,328 Crores till 1 st   March  2021.  Payment of  Rs.  53,346  Crores  have been made by taxpayers under the scheme till 1 st  March 2021. (b)  No.  Amicable  resolution  of  large  number  of  pending  tax  disputes  was  the  primary objective of the scheme.  Collection of revenue blocked in litigation is an added advantage that has accrued to the Government. The total number of pending tax disputes as on the Eligibility date was 5,10,491. The 1,28,733 declarations relate to 1,43,126 pending disputes (including cross appeals). Thus, the declarations received under the scheme cover more than

28% of pending tax disputes.

(c)    In  order  to  impart greater efficiency, transparency and accountability to the process of disposal of appeals by the Commissioner (Appeals), the Faceless Appeals Scheme, 2020 was notified on 25.09.2020. Under this scheme, appeals before the Commissioner (Appeals) will be  disposed  by  eliminating  the  interface  between  the  Commissioner  (Appeals)  and  the appellant  in  the  course  of  appellate  proceedings  to  the  extent  technologically  feasible. However, appeals relating to serious frauds, major tax evasion, sensitive & search matters, International tax and Black Money Act will not be covered by the scheme. The Finance Bill, 2021 has further proposed a number of measures for better dispute resolution mechanism which are discussed below:-

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA UNSTARRED QUESTION NO. 2256

## TO BE ANSWERED ON MONDAY THE 8 th   MARCH 2021/PHALGUNA 17, 1942 (SAKA)

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## 'Vivad se Vishwas Scheme'

## (i) Faceless Income-tax Appellate Tribunal (ITAT)-

The Finance Bill, 2021 has proposed to empower the Central Government to notify a scheme for  the  purposes  of  disposal  of  appeal  by  the  ITAT  so  as  to  impart  greater  efficiency, transparency and accountability by eliminating the interface between the ITAT and parties to the  appeal  in  the  course  of  proceedings  to  the  extent  technologically  feasible,  optimising utilisation  of  the  resources  through  economies  of  scale  and  functional  specialisation  and introducing an appellate system with dynamic jurisdiction.

## (ii) Dispute Resolution Committee (DRC)-

With the objective to allow small taxpayers to resolve their disputes with minimum cost and compliance  burden,  the  Finance  Bill,  2021  has  proposed  to  create  one  or  more  DRC specifically targeted towards such taxpayers.  The DRC shall have the powers to reduce or waive any penalty imposable or grant immunity from prosecution for any offence under the Income  tax  Act,  1961  ('the  Act').The  Finance  Bill,  2021  has  also  empowered  the  Central Government  to  make  a  scheme  by  notification  in  the  Official  Gazette  for  the  purpose  of dispute  resolution  by  DRC.  The  scheme  shall  impart  greater  efficiency,  transparency  and accountability  by  eliminating  interface  to  the  extent  technologically  feasible,  by  optimising utilisation of resources and introducing dynamic jurisdiction.

## (iii) Board for Advance Rulings (BAR)-

With a view to avoiding dispute in respect of assessment of tax liability and to provide tax certainty,  the  Authority  for  Advance  Rulings  (AAR)  was  constituted vide the  Finance  Act, 1993 by inserting a new Chapter XIX-B in the Act. In order to enhance the effectiveness of advance rulings, the Finance Bill, 2021 has proposed to replace the AAR by one or more BAR for  giving  advance rulings under the Act. Every such Board shall consist of two members, each being an officer not below the rank of Chief Commissioner. The Finance Bill, 2021has also proposed to empower the Central Government to make a scheme by notification in the Official Gazette for the purpose of giving advance ruling by BAR to impart greater efficiency, transparency and accountability by eliminating interface between the Bar and the applicants to the extent technologically feasible, by optimising utilisation of resources and introducing dynamic jurisdiction.

## (iv) Interim Board for Settlement ('Interim Board')-

The  Finance  Bill,  2021  has  proposed  to  discontinue  Income-tax  Settlement  Commission (ITSC) with effect from 01.02.2021. The pending cases for settlement shall be disposed by the Interim Board to be constituted by the Central Government. Further, the Finance Bill, 2021 proposes  to    empower  the  Central  Government  to  make  a  scheme,  by  notification  in  the Official  Gazette,  for  the  purposes  of  settlement  in  respect  of  pending  applications  by  the Interim  Board,  so  as  to  impart  greater  efficiency,  transparency  and  accountability  by eliminating  the  interface  between  the  Interim  Board  and  the  assessee  in  the  course  of proceedings  to  the  extent  technologically  feasible;  optimising  utilisation  of  the  resources through economies of scale and functional specialisation; and introducing a mechanism with dynamic jurisdiction.'

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