Vivad se Vishwas Scheme

vivad se vishwas scheme
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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.

Due dates for Vivad Se Vishwas Scheme

 Particulars

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

31.12.2020

31.01.2021 28.02.2021

31.03.2021

Payment of taxes in Form – 3

31.03.2021

31.03.2021 31.03.2021

30.04.2021

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. 

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About CA Ankita Khetan 164 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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