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CBDT Extended Payment Date for Direct Tax Vivad se Vishwas Scheme without Additional Amount

cbdt-extended-payment-date-for-direct-tax-vivad-se-vishwas-scheme-without-additional-amount

CBDT vide Notification No. 85/2020 in S.O. 3847(E) issued on 27.10.2020 has extended the date for making payment without additional amount under the Vivad se Vishwas Scheme from 31st December 2020 to 31st March 2021. Further, the Notification requires the declarations are required to be filed latest by 31st December 2020.

Earlier the date for filing the declaration and making payment without additional amount under Vivad se Vishwas was extended from 31st March 2020 to 30th June 2020 by the Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020.


Later again, this date was extended further to 31st December 2020 by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 by amending the Direct Tax Vivad se Vishwas Act, 2020 to extend the date for payment without 10% additional amount to 31-12-2020 in line with the relaxation provided in the Ordinance of 2020. It also empowers the Central Government to notify certain dates relating to filing of declaration and making of the payment. Earlier both the declaration and the payment without additional amount under the Vivad se Vishwas were required to be made by 31st December 2020.


The Central Government has notified the Direct Tax Vivad se Vishwas Rules, 2020 and corresponding Forms as required under the Direct Tax Vivad se Vishwas Act, 2020 vide Notification No. 18/2020 dated 18.03.2020.


Read the important clarification from the CBDT on Extended Payment Date under Vivad se Vishwas Scheme


The following 5 types of Forms have been notified under the Rules. 


Form No.

Purpose of Forms

Form-1

Form for filing declaration

Form-2

Undertaking u/s 4(5) of the Direct Tax Vivad Se Vishwas Act, 2020

Form-3

Form of Certificate u/s 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020

Form-4

Intimation of payment u/s 5(2) of the Direct Tax Vivad Se Vishwas Act, 2020

Form-5

Order for Full and Final Settlement of Tax Arrear under section 5(2) read with section 6 of The Direct Tax Vivad Se Vishwas Act, 2020


The said Notification has amended the following dates under the Vivad se Vishwas Scheme-


Dates

Amendments

31st December 2020

The declaration shall be filed to the designated authority

31st March 2021

The payment date of the amount of the disputed tax

(third column of the Table to section 3 of the DTVSV Act amended)

1st April 2021

The payment date of the amount of the disputed tax with 10% additional amount

(fourth column of the Table to section 3 of the DTVSV Act amended)


Read the full text of the Notification No. 85/2020 dated 27.10.2020


MINISTRY OF FINANCE 

(Department of Revenue) 


NOTIFICATION 


New Delhi, the 27th October, 2020


S.O. 3847(E).—In exercise of the powers conferred by section 3 of the Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020), the Central Government hereby notifies that the,–


(a) 31st day of December, 2020 shall be the date, on or before which a declaration shall be filed to the designated authority, by the declarant, in accordance with the provisions of section 4 of the said Act in respect of tax arrear;


(b) 31st day of March, 2021 shall be the date on or before which the amount payable under the said Act shall be paid as per third column of the Table to section 3 of the said Act; and


(c) 1st day of April, 2021 shall be the date on or after which the amount payable under the said Act shall be paid as per fourth column of the Table to section 3 of the said Act.


2. This notification shall come into force from the date of its publication in the Official Gazette.


[Notification No. 85/2020, F. No. IT(A)/1/2020-TPL]

ANKUR GOYAL, Under Secy.


The Ministry of Finance has issued a press note on 27.10.2020 in this context which is reproduced below.


Payment Date Extended for Vivad se Vishwas Scheme, Finance Secretary urges I-T Department to Reach Out to the Taxpayers


In order to provide further relief to the taxpayers desirous of settling disputes under Vivad se Vishwas Scheme, the Government today further extended the date for making payment without additional amount from 31st December 2020 to 31st March 2021. The last date for making the declaration under the Scheme has also been notified as 31st December 2020. As per the notification issued today, the declaration under the Vivad se Vishwas Scheme shall be required to be furnished latest by 31st December 2020, however, only in respect of said declarations made by 31st December 2020 the payment without additional amount can now be made up to 31st March 2021.


Meanwhile, Finance Secretary Dr. Ajay Bhushan Pandey today reviewed the progress made so far by the Income Tax Department on Vivad se Vishwas Scheme in a high level meeting through video conferencing along with CBDT Chairman and Board members with all Principal Chief Commissioners of Income Tax across the country to expedite the Scheme which, he said, is highly beneficial to the taxpayers, adding further that “We need to advance the Vivad se Vishwas Scheme with greater persuasion and perseverance and must reach out to the taxpayers to facilitate all necessary handholding.”


In the meeting, suggestions and comments of the Field Officers were also discussed regarding the action plan for successful implementation of the Scheme in a time-bound manner.


Finance Secretary Dr. Pandey said, “This is a scheme for the benefit and convenience of the taxpayers as they would get instant disposal of the dispute with no further cost of litigation besides monetary benefits in the form of waiver of penalty, interest and prosecution. With this Scheme, on the one hand, a taxpayer would be benefitted with stress-free time to put her/his efforts for more meaningful daily life/routine or expanding business activities while on the other, the government would  be getting its due long pending revenue and also, savings on the huge cost on resources that these disputes consume.”


In the meeting, CBDT Chairman Shri P.C. Mody mentioned the importance of cleaning up of demand for facilitating and persuading the taxpayers for filing declarations under the Scheme. He emphasized on Pr. Chief Commissioners of Income Tax to carry out all possible actions such as disposing pending rectifications, giving pending appeal effects, removing duplicate demands, etc. so as to arrive at a final demand for each assessee so that whenever a taxpayer files Form 1 or 2 under the Vivad se Vishwas Scheme, the Pr. Commissioner of Income Tax concerned is in a position to issue Form 3 promptly.


It was also decided in the meeting to adopt a proactive approach for implementation of the Scheme by approaching taxpayers directly, guiding and facilitating them in filing of declarations and removing any difficulties or problems faced by them in availing the Scheme. It was further decided to have periodic review of the progress of the Scheme every fortnight.


It is pertinent to mention here that the Direct Tax Vivad se Vishwas Act, 2020 was enacted on 17th March, 2020 with the objective to reduce pending income tax litigation, generate timely revenue for the Government and to benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process. In order to provide more time to taxpayers to settle disputes, earlier the date for filing declaration and making payment without additional amount under Vivad se Vishwas was extended from 31st March 2020 to 30th June, 2020. Later again, this date was extended further to 31st December, 2020. Therefore, earlier both the declaration and the payment without additional amount under the Vivad se Vishwas were required to be made by 31st December, 2020.


Download Copy of Notification No. 85/2020 dated 27.10.2020 on extension of payment date under Vivad se Vishwas Scheme in pdf format


 

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