Budget 2020: Scheme on I-T disputes won’t cheer Vodafone and Cairn Energy

The finance minister announced a new scheme ‘Vivad Se Vishwas’ in the Budget, to end all pending income tax (I-T) disputes. Tax experts, however, say this will not attract big cases such as Vodafone and Cairn Energy, given the government is seeking 100 per cent of the tax demand upfront by March. Nevertheless, the schemes has waived off penalty and interest.

“We have to wait for details of the scheme, as only the announcement has been made. However, to expect 100 per cent of the tax demand to be paid, particularly in the context that many of these demands are highly controversial, does not appear practical and, as such, the scheme does not seem appealing,” said Ketan Dalal, managing partner of Katalyst Advisors. “Also, to expect taxpayers to avail of this scheme by March end, given the ongoing cash flow strain overall, seems impractical.”