Now, more time for payment under Vivad Se Vishwas

Govt extends deadline to make payment under Vivad Se Vishwas scheme till March 31

Representative image.

The government on Tuesday extended for the third time the deadline for making payment under the direct tax dispute settlement scheme 'Vivad Se Vishwas' by three months to March 31, 2021.  

As per a Central Board of Direct Taxes (CBDT) notification, declaration under the Vivad se Vishwas Scheme shall be required to be furnished latest by December 31, 2020. However, only in respect of the said declarations made, the payment without additional amount can now be made up to March 31, 2021.

"In order to provide further relief to the taxpayers desirous of settling disputes under Vivad se Vishwas Scheme, the Government today further extended the date for making payment without additional amount from 31st December 2020 to 31st March 2021.

"Also, the last date for making declaration under the Scheme has been notified as December 31, 2020," an official statement said.

Finance Secretary Ajay Bhushan Pandey on Tuesday reviewed the progress made so far by the Income Tax Department on Vivad se Vishwas through video conferencing along with CBDT chairman and board members and all the Principal Chief Commissioners of Income Tax across the country to expedite the scheme.

"This is a scheme for the benefit and convenience of the taxpayers as they would get instant disposal of the dispute with no further cost of litigation besides monetary benefits in the form of waiver of penalty, interest and prosecution," Pandey said.

In the meeting, CBDT Chairman P C Mody asked the Principal Chief Commissioners of Income Tax to carry out all possible actions such as disposing pending rectifications, giving pending appeal effects and removing duplicate demands so as to arrive at a final demand for each assessee.

It was decided in the meeting to adopt a proactive approach for implementation of the scheme by approaching taxpayers directly, guiding and facilitating them in filing of declarations and removing any difficulties or problems faced by them in availing the scheme.

It was further decided to have periodic review of the progress of the scheme every fortnight.

The Direct Tax Vivad se Vishwas Act, 2020 was enacted on March 17, 2020 to settle direct tax disputes locked up in various appellate forums.

In order to provide more time to taxpayers to settle disputes, earlier the date for filing declaration and making payment without additional amount under Vivad se Vishwas was extended from March 31, 2020 to June 30, 2020. This date was again extended to December 31, 2020.

Earlier, both the declaration and the payment without additional amount under the Vivad se Vishwas were required to be made by December 31, 2020.