Vivad se Vishwas Scheme
Honorable Finance Minister Nirmala Sitharaman had announced the Direct Tax Vivad se Vishwas Scheme in her speech on Union Budget 2020. The Direct Tax Vivad se Vishwas Scheme was enacted into Direct Tax Vivad se Vishwas on 17 March 2020.
The scheme was introduced in order to reduce the burden of pending litigations that are disputed at either Commissioner of Income Tax (Appeals) or Income Tax Appellee Tribunal or High Court or Supreme Court. Taxpayer gets an opportunity to evaluate either to settle the matter under the DTVSV scheme or continue with the litigation.
Government has time and again increased the due dates for declaration and payment under the Vivad se Vishwas Scheme as the benefit of the scheme could not be taken by taxpayers at large, as soon after the scheme was announced, the world witnessed the COVID 19 pandemic.
CBDT Notification No.85 dated 27.10.2020
|CBDT Notification No.93 dated 31.12.2020||CBDT Notification No. 4 dated 31.01.2021||
CBDT Notification No. 9 dated 26.02.2021
|Filing of declaration in Form – 1 & Form – 2||
|Payment of taxes in Form – 3||
Note: It is applicable for any appeals/petitions which was pending up to 31st January 2020.
Note: Declaration filed under the scheme can be revised any number of times before the Designated Authority issues a certificate u/s 5(1) of the Act.
Note: If prosecution proceedings have been initiated then, the assessee will not be eligible to file a declaration under this scheme.
Tax Payout if an assessee intends to avail the benefit of DTVSV 2020
|Particulars||If appeals/ writ/ SLP/ DRP objections/ revision application (sec 264)/ arbitration filed by the Assessee||If appeals/ writ/ SLP filed by the Department|
|Search cases||125% of the disputed tax||62.5% of the disputed tax|
|Other than search cases||100% of the disputed tax||50% of the disputed tax|
|Cases related only to interest, penalty, or fees||25% of the disputed penalty, interest or fees||12.5% of the disputed penalty, interest or fees|
Note: Penalty imposed u/s 271B, 271BA, 271DA of the Act will not be waived under this scheme.