Tax officials are ready with necessary rules and forms under the Vivad Se Vishwas Scheme to settle direct tax disputes, and will issue them soon after the law gets presidential assent, two officials told ET.

The Central Board of Direct Taxes has also directed its officers to be prepared with tax calculations for taxpayers to ensure speedy execution of the scheme, given the tight deadline of March 31, they said. It is also ready with the online system that will be used by taxpayers to avail the scheme.

Parliament had on Friday approved the Direct Tax Vivad se Vishwas Bill, 2020, which would give taxpayers an opportunity to settle their disputes by paying due taxes with complete waiver of interest and penalty until March 31. It would also allow dispute settlement with some additional payment till July 31.

“The forms and rules are ready,” a senior official told ET on condition of anonymity. “Once the bill is enacted, we will be able to issue them. Even the utility is also ready from the system side, so online declarations can be filed immediately after the bill is enacted.”

In order to make the process simpler for interested parties, the forms will specify the amounts that the taxpayer has to pay by March 31, and after that date, the official said.

The forms have been designed assessment year wise, where each year will show the disputed tax, the amount already paid, and balance whether refundable or payable. Such a mechanism has been adopted since setting off the refund of one assessment year will not be eligible for payment of tax for the next assessment year, the official said.

“Field officers have already done a lot of the calculations in various cases,” the person said. “When taxpayers or companies come for filing the declaration, the 15 days’ time is an outer limit, but field officers will be able to do it much earlier, because they’re already on the job.”

Another official said the department has decided to make chief commissioners in each jurisdiction as the designated authority for filing declarations, ensuring that a widespread network of officials is able to address issues that interested parties may have.

Source : Financial Express