The Central Board of Direct Taxes has issued Clarifications on provisions of the Direct Tax Vivad se Vishwas Bill, 2020 on 4th March 2020.
The objective of Vivad se Vishwas is to inter alia reduce income tax litigation and thereby generate timely revenue for the Government and benefit taxpayers by providing them savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process.
CBDT has addressed several queries that have been raised by the stakeholders seeking clarifications in respect of various provisions. The Circular has covered as many as 55 queries related to the direct tax amnesty scheme.
Key Highlights:
- An assesse whose case is pending in arbitration is eligible to apply for settlement under Vivad se Vishwas even if no appeal is pending. In such case assessee should fill the relevant details applicable in his case in the declaration form. However, the scheme shall be applicable for disputes pending before the authority for advance ruling.
- Vivad se Vishwas can be availed by the appellant irrespective of whether the tax arrears have been paid either partly or fully or are outstanding.
- Delay in deposit of TDS/TCS shall be covered under Vivad se Vishwas.
- Under Vivad se Vishwas, interest and penalty will be waived only in respect of the issue which is disputed in appeal and for which declaration is filed. Hence, for the undisputed issue, the tax, interest and penalty shall be payable.
Click here to read the Notification.
