The DIRECT TAX VIVAD SE VISHWAS ACT 2020 was enacted to:
Answer & Solution
Correct answer: A.
1. The Direct Tax Vivad se Vishwas Act 2020 (Vivad se Vishwas Act) was enacted to resolve direct tax disputes.
2. KEY FEATURES:
3. (i) APPLIES to disputes pending before any appellate authority on 31 January 2020;
4. (ii) Pay DISPUTED TAX in full + 10% additional (or 25% additional for cases on appeal by Department) — get WAIVER of interest, penalty, prosecution;
5. (iii) ONE-TIME WINDOW — extended several times to allow more participation;
6. (iv) PROCESS: declaration in Form 1; pay amount; certificate of full settlement;
7. (v) Withdraw all related appeals.
8. PURPOSE: clear backlog of direct tax disputes pending in various forums; provide certainty to taxpayers.
9. By 31 March 2021, Vivad se Vishwas had attracted resolution of nearly 1.4 lakh cases involving over Rs 1.5 trillion of disputed tax.
10. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Direct Tax Vivad se Vishwas Act 2020_
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