On Wednesday, the Central Board of Direct Taxes (CBDT) has issued a clarification in respect of direct tax under Vivad Se Vishwas Act, 2020, in which it has extended the timeline for making payment without additional amount till March 31, 2021.
The Direct Tax Vivad Se Vishwas Act, 2020 got enacted on March 17, 2020, to settle direct tax disputes that are locked up in various appellate forums. The provisions of Vivad Se Vishwas got amended by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 to provide some relaxation because of the COVID-19 pandemic.
CBDT has said in its clarification that in order to mitigate the undue hardship and to remove the earlier requirement of making payment by the taxpayer within 15 days of receiving declaration certificate from designated authority will not apply and it shall allow the declarant to make the payment without additional amount on or before March 31, 2021.
“It is hereby clarified that where a declarant files a declaration under Vivad Se Vishwas on or before 31st December, 2020, the designated authority, while issuing the certificate under sub-section (I) of section 5 of Vivad Se Vishwas, shall allow the declarant to make payment without additional amount on or before 31st March, 2021,” CBDT said.
The government on Tuesday extended for the third time the deadline for making payment under the scheme by three months to March 31, 2021. However, declarations are required to be filed by December 31, 2020.
With Warm Regards,
CL Bureau.
