CBDT Extends Date of Payment under Vivad se Vishwas Act

Central Board of Direct Taxation vides a Press Release dated 29.08.2021 informed that the date of payment of disputed tax under section 3 of the Direct Tax Vivad se Vishwas Act, 2020 without any 10% additional amount is extended to 30th September 2021 from the earlier extended date of 31st August 2021. The last date for payment of the amount (with 10% additional amount) remains 31st October 2021.

Synopsis of Notification

The Synopsis of the notification about the due date extension under the Direct Tax Vivad se Vishwas Act is as follows:

With this notification, CBDT extends the date for making payment without an additional amount under the Vivad se Vishwas Act from 31st August 2021to 30th September 2021.
The CBDT also notified the last date for filing payment of the amount (with 10% additional amount under Vivad se Vishwas as 31st October 2021.

Direct Tax Vivad se Vishwas (DTVSV) Act

The Direct Tax Vivad se Vishwas (DTVSV) Act has been introduced to reduce pending income tax litigation, generate timely revenue for the Government of India. The disputes covered under the Direct Tax Vivad se Vishwas (DTVSV) Act is as follows:

Disputed tax
Disputed Fee
Disputed penalty
Disputed interest
Disputed Tax Deducted at Source (TDS) or tax collected at source (TCS)

The Central Board of Direct Taxes ( CBDT ) has extended the date under section 3 of the Vivad se Vishwas Act. The amount payable by the declarant is provided in the table under section 3 of the Direct Tax Vivad se Vishwas Act 2020.

Earlier Extension

CBDT vide a Notification No. 75/2021 dated 25th June 2021 announced that the last date of payment of the amount (without any additional amount) was 31st August 2021. This date is now extended to 30th September 2021.

Prescribed Date for Payment under Vivad se Vishwas

As mentioned above, according to the existing provisions of sub-section (2) of section 5 of the Vivad se Vishwas Act, the taxpayer needs to pay the amount within 15 days from the date of receipt of the certificate from the designated authority. As per this notification, a declarant who files a declaration on a prescribed date can make a payment without an additional amount on or before 30th September 2021.

Clarifications on Payment under Vivad se Vishwas

As per the section 10 and11 of Vivad se Vishwas, it is hereby clarified that if a declarant files a declaration under Vivad se Vishwas on the prescribed date, the designated authority, while issuing the certificate under sub-section (1) of section 5 of the Vivad se Vishwas Act, will allow declarant to make the payment without additional amount on or before 30th September 2021

Prescribed Date for Payment of the amount (with additional amount)

Further, the last date for payment of the amount (with additional amount) under the Direct Tax Vivad se Vishwas Act was notified as 31st October 2021. There is no change proposed for the end date of the Scheme

Procedure for Filing Declaration – e-Filing of DTVSV Form

The taxpayer needs to file five DTVSV Forms to avail of the direct tax dispute resolution under the Vivad se Vishwas Act, 2020. The taxpayers willing to avail of the direct tax dispute resolution need to file five online forms through the official website of the Income-tax department and the Designated Authority will issue the certificate and order electronically.

The declarant needs to file a declaration under the Vivad se Vishwas in Form-1 and relevant schedules.
The declarant also needs to file the undertaking in DTVSV Form-2 along with Form-1.
The Designated Authority will intimate the tax payable or refundable amount to the taxpayer in Form 3.
The declarant needs to intimate the details of payment in Form-4 along with proof of withdrawal of relevant appeal, writ, and arbitration for dispute resolution.
The Designated Authority will issue the order regarding the full and final settlement of the dispute in Form-5.

Click here to know more about the e-Filing of the DTVSV Forms