Salient Features Of Direct Tax Vivad Se Vishwas Bill, 2020

Manish Dafria | Last updated: 01 February 2021

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Quick Summary

The Direct Tax Vivad Se Vishwas Bill 2020 offers a scheme to settle tax disputes. It covers cases involving appeals, writs, revision petitions, and more, relating to 'Tax Arrears' which include disputed tax, interest, and penalties. However, certain situations are excluded, such as cases involving undisclosed foreign income or assets, and specific prosecutions or detentions.

ELIGIBLE CASES:

Appeals/writs/S.L.P. pending
Orders for which time for filing appeal/S.L.P. not expired
DRP Cases pending
264 Revision pending

DISPUTES COVERED:
Scheme applies with reference to 'Tax Arrears'

'Tax Arrear' means:

the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax, and penalty leviable or levied on such disputed tax
disputed interest
disputed penalty
disputed fee

Direct Tax Vivad Se Vishwas Bill 2020: Key Features

SCHEME NOT APPLICABLE

In respect of tax arrear relating to:

- an assessment year in respect of which an assessment has been made u/s. 143(3)/144/153A/153C on the basis of search initiated u/s. 132/132A, if the amount of disputed tax exceeds five crore rupees

- an assessment year in respect of which prosecution has been instituted on or before the date of filing of declaration;

- any undisclosed income from a source located outside India or undisclosed asset located outside India;

- an assessment or reassessment made on the basis of information received under an agreement referred to in section 90 or section 90A of the Income-tax Act, if it relates to any tax arrear

- To any person in respect of whom an order of detention has been made under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 on or before the filing of declaration

- To any person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 on or before the filing of declaration

- To any person in respect of whom prosecution for any offence punishable under the provisions of the Unlawful Activities(Prevention) Act, 1967, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Prevention of Corruption Act, 1988, the Prevention of Money Laundering Act, 2002, the Prohibition of Benami Property Transactions Act, 1988 has been instituted on or before the filing of the declaration or such person has been convicted of any such offence punishable under any of those Acts

- To any person in respect of whom prosecution has been initiated by an Income-tax authority for any offence punishable under the provisions of the Indian Penal Code or for the purpose of enforcement of any civil liability under any law for the time being in force, on or before the filing of the declaration or such person has been convicted of any such offence consequent to the prosecution initiated by an Income-tax authority

Where the 'tax arrear' is the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax, and penalty leviable or levied on such disputed tax.

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FAQ :

Eligible cases include appeals, writs, S.L.P.s pending, orders for which the time for filing an appeal or S.L.P. has not expired, DRP cases pending, and revision petitions under section 264 pending.

'Tax Arrear' means the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax, and penalty leviable or levied on such disputed tax, disputed interest, disputed penalty, and disputed fee.

The scheme is not applicable for tax arrears relating to assessments based on search initiated under section 132/132A where disputed tax exceeds five crore rupees, or where prosecution has been instituted before the declaration date.

No, the scheme is not applicable to tax arrears relating to any undisclosed income from a source located outside India or undisclosed asset located outside India.

The scheme does not apply to any person in respect of whom an order of detention has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, on or before the filing of the declaration.

The scheme is not applicable to persons in respect of whom prosecution has been instituted or convicted for offences under acts like the Prevention of Money Laundering Act, 2002, or the Unlawful Activities (Prevention) Act, 1967, before the filing of the declaration.