Extension of Due Date for Filing DTVSV Forms

On account of constraints being faced by the taxpayers due to COVID-19, the Central Board of Direct Taxation (CBDT) further extends the due dates for filing DTVSV Forms under DTVSV Act, 2020. As per the CBDT’s Notification issued on 26^th February 2021, the DTVSV Forms filing deadline has been extended to 31st March 2021, from the earlier deadline of 28^th February 2021. The CBDT has also extended the deadline for making payment under the direct tax dispute settlement scheme. The current article briefs the extension so provided.

Synopsis of CBDT Notification

The Synopsis of CBDT Notification about the Extension of the due date of furnishing of DTVSV Forms under Vivad Se Vishwas Scheme is as follows:

The last date for making a declaration under Vivad Se Vishwas Scheme has been extended to 31^st March 2021 from 28^th February 2021
The payment date of the amount of the disputed tax (third column of the Table to section 3 of the DTVSV Act amended) has been extended to 30th April 2021 from the earlier deadline of 31^st March 2021
The payment date of the amount of the disputed tax with 10% additional amount (fourth column of the Table to section 3 of the DTVSV Act amended) has also been extended to 1st May 2021 from the earlier deadline of 1^st April 2021

Direct Tax Vivad se Vishwas (DTVSV) Scheme

During the Union Budget, 2020 the Direct Tax Vivad se Vishwas (DTVSV) Scheme was launched to provide for dispute resolution in respect of pending income tax litigation. The objective of the DTVSV scheme is to reduce pending income tax litigation, generate timely revenue for the Government of India. The taxpayer needs to file five DTVSV Forms to avail the direct tax dispute resolution under the Vivad se Vishwas Act, 2020. The Central Board of Direct Taxes has recently launched an online filing system for e-Filing of DTVSV Form. 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.

Due date extension under Vivad se Vishwas (DTVSV) Scheme

The CBDT’s Notification has amended the following dates under the Vivid se Vishwas Scheme:

Sl.No	Amendments	Due Date prescribed as per Earlier Notification	Extended Due Date
1	Furnishing declaration to opt for VSV Scheme	28^th February 2021	31^st March 2021
2	The payment date of the amount of the disputed tax(third column of the Table to section 3 of the DTVSV Act amended)	31^st March 2021	30th April 2021
3	The payment date of the amount of the disputed tax with 10% additional amount(fourth column of the Table to section 3 of the DTVSV Act amended)	1^st April 2021	1^st May 2021

Due date extension for Filing Declaration

As per the Vivad se Vishwas (DTVSV) Scheme, the applicant is required to file a declaration before the designated authority (i.e. before an officer not below the rank of Commissioner of Income Tax Department). As per the notification, the taxpayer needs to file a declaration under the DTVSV Scheme in Form-1 and relevant schedules on or before 31^st March 2021. On receipt of the declaration, the designated authority would determine the amount payable by the declaration. After determining the amount payable, the designated authority will grant a certificate to the declarant within 15 days from the date of receipt of the declaration, providing particulars of tax arrears and the amount payable.

Due date extension for Payment of the Disputed tax

On receipt of the certificate, the declaring is required to pay the amount determined within 15 days from the date of receipt of the certificate. The declarant is required to intimate the details of payment to the designated authority. On receiving the payment intimation, the designated authority shall pass an order. Such order shall be conclusive, and no matter covered by such order can be reopened in any other proceedings under the Income Tax Act or any other law.

Due date extension for payment of Additional 10% Disputed Tax

As per the previous rules, a taxpayer who needs to settle disputes under the DTVSV scheme will be allowed a complete waiver of interest and penalty if he/she pays the whole amount of tax in dispute by 31.03.2020. After March 31st, 2020 an additional 10% of disputed tax needs to be paid over and above the tax liability.

With this notification, CBDT also announced that the taxpayer needs to pay disputed tax with a 10% additional amount on or before 1st May 2021. The earlier deadline for payment of 10% additional amount was 1^st April 2021.