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

Circular No. 21 /2020
F. No. IT(A)/1/2020-TPL
Government of India 
Ministry of Finance 
Department of Revenue 
Central Board of Direct Taxes
Dated: 4th December, 2020 

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

With the objective to reduce pending income tax litigation, generate timely revenue for the Goverrunent and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otberwise be spent on the long-drawn and vexatious litigation process, the Direct Tax Vivad se Vishwas Act, 2020 (hereinafter referred to as 'Vivad se Vishwas') was enacted on 17th March, 2020. The provisions of Vivad se Vishwas were amended by tbe Taxation and Otber Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 to provide certain relaxations in view of the COVID-19 pandemic and also to empower the Central Government to notify certain dates. Towards this end, vide notification dated 27'" October, 2020 tbe date for payment without additional amount under Vivad se Vishwas was extended from 31" December, 2020 to 31st March, 2021. The last date for filing declaration under Vivad se Vishwas was also notified as 31 ,t December, 2020. Subsequently, tbe Central Board of Direct Taxes issued a circular no. 18/2020 dated 28th October, 2020 relaxing tbe time limit of 15 days prescribed in section 5(1) of Vivad se Vishwas for making payment of amount payable, as detennined in a certificate issued by the Designated Autbority.

2. In order to facilitate the taxpayers, the Board had vide circular no. 9/2020 dated nnd April, 2020 issued clarifications in form of answers to 55 frequently asked questions (FAQs) on issues related to eligibility, computation of amount payable, procedure and consequences under Vivad se Vishwas. Several representations have been received thereafter seeking further relaxation and clarifications with respect to such issues. Some of these representations have already been addressed through the aforesaid notification dated 27th October, 2020 and circular dated 28th October, 2020.

3. Section 10 and 11 of the Vivad se Vishwas empowers the Board / Central Goverrnnent to issue directions or orders in public interest or to remove difficulties. This circular is being issued in continuation of circular dated 22nd April, 2020 (which covered Q. no. I - 55) under section 10 and 11 of the Vivad se Vishwas to provide answers to 34 more FAQs (Q. no. 56 - 89). It may be noted that in the FAQs, Income Tax Act, 1961 has been referred to as the Act, Designated Authority (under Vivad se Vishwas) has been referred to as the DA, Assessing Officer has been referred to as the AO, Commissioner (Appeals) has been referred to as CIT(A), and the Income Tax Department has been referred to as the Department.

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