Clarifications on provisions of the Direct Tax Vivad se Vishwas Act, 2020

Last updated: 23 April 2020

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The Direct Tax Vivad se Vishwas Act, 2020, was introduced to resolve pending income tax disputes. Following stakeholder feedback, official amendments were made to broaden its scope and ease taxpayer compliance. The Central Board of Direct Taxes has issued clarifications on various provisions of the Act in the form of FAQs, as detailed in Circular No. 7 of 2020.

F. No. JT(A)/1/2020-TPL

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

Dated: 22nd April, 2020

Sub.: Clarifications on provisions of the Direct Tax Vivad se Vishwas Act, 2020 - reg.

During the Union Budget, 2020 presentation, the 'Vivad se Vishwas' Scheme was announced to provide for dispute resolution in respect of pending income tax litigation. Pursuant to Budget announcement, the Direct Tax Vivad se Vishwas Bill, 2020 (the Bill) was introduced in the Lok Sabha on 5th Feb, 2020. Subsequently, based on the representations received from the stakeholders regarding its various provisions, official amendments to the Bill were proposed. These amendments sought to widen the scope of the bill and reduce the compliance burden on taxpayers.

2. After introduction of the bill in Lok Sabha, several queries were received from the stakeholders seeking clarifications in respect of various provisions contained therein. Government had considered these queries and had dccided to clarify the same in fonn of answcrs to frequently asked questions (FAQs) vide circular no 7 of 2020 dated 41h March 2020. These clarifications were, however, subject to approval and passing of the bill by the Parliament and receiving assent of the Hon 'ble President of India.

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FAQ :

The Vivad se Vishwas Scheme was announced to provide a mechanism for dispute resolution in respect of pending income tax litigation.

The Direct Tax Vivad se Vishwas Bill, 2020 was introduced in the Lok Sabha on 5th February 2020.

Yes, official amendments were proposed to the Bill based on representations received from stakeholders, aiming to widen its scope and reduce compliance burden.

Clarifications on various provisions of the Act have been issued by the Government in the form of answers to frequently asked questions (FAQs) via circular no 7 of 2020 dated 4th March 2020.