CBDT Notifies Extension of Deadline for the Vivad Se Vishwas Scheme

Recently, the Central Board of Direct Taxes (CBDT), by way of the powers provided under section 3 of the Direct Tax Vivad se Vishwas Scheme, has passed a Notification No. S.O. 964 (E), issued on 26.02.2021, regarding the extension of deadline for the Vivad se Vishwas Scheme. Further, the said amendment was made in the Notification, No 85/ 2020, issued on 27.10.2020.

In this blog, we will cover the concept and extension of deadline for the Vivad se Vishwas Scheme.

Concept of Vivad se Vishwas Scheme

The Vivaad se Vishwas Scheme 2020 was announced by our Union Finance Minister, Ms Nirmala Sitharaman, in the Budget Speech 2020 as the ‘No Dispute but Trust Scheme: Vivad se Vishwas Scheme’. The main objective of this scheme was to settle down all the pending litigations concerning direct taxes.

Moreover, it shall be noted that this particular scheme is a ‘Win-Win Dispute Resolution Package for both taxpayer and government, and it offers both certainty and immunity to the taxpayer pertaining to Income Tax Return Filing and prosecution. Also, the same ensures timely revenue generation, saving of resources and time of the government.

Also, it shall be noted that the concept of its scheme is similar to the scheme named ‘Indirect Tax, Sabka Vishwas’. The same was introduced by the Finance Minister during her budget presentation in the year 2019. Further, the main aim of this scheme was to reduce dispute concerning excise and service tax payments.

Also, Read: CBDT Clarifies Provisions Regarding TDS Deduction from Salaries for F.Y. 2020-21

Objectives of Vivad se Vishwas Scheme

The main objectives of the Scheme of Vivad se Vishwas are as follows:

• To resolve pending tax disputes and litigations;
• To save resources and time of the government;
• To facilitate timely revenue generation for the government;
• To assist the taxpayers in ending their pending tax disputes;
• To offer waiver from the payment of interest and penalty;
• To provide immunity against prosecution; 

Notification for Extension of Deadline for Vivad se Vishwas Scheme

The notification passed by CBDT deals with the extension of deadline for the scheme of Vivad se Vishwas in the cases as follows:

Deadline for Filing Declaration

The deadline for filing declaration has been substituted from 28.02.2021 to 31.03.2021.

Payment of Tax based on the Third Column of the Table to Section 3

The deadline for making payment of tax based on the third column of the table to section 3 has been substituted from 31.03.2021 to 30.04.2021.

Payment of Tax based on the Fourth Column of the Table to Section 3

The deadline for making payment of tax based on the fourth column of the table to section 3 has been substituted from 01.04.2021 to 01.05.2021.

Conclusion

In a nutshell, Vivaad se Vishwas Scheme 2020 aims to settle down all the pending litigations concerning direct taxes. Further, it is similar to the scheme named Indirect Tax, Sabka Vishwas, which was introduced in the Budget speech of the year 2019.

However, the CBDT has passed a Notification No. S.O. 964 (E), issued on 26.02.2021, regarding the extension of deadline for the Vishwas se Vivaad Scheme. The said notification was an amendment to the Notification, No 85/ 2020, issued on 27.10.2020.

Official CBDT Notification on Extension of Deadline

Official-CBDT-Notification-on-Extension-of-Deadline

Also, Read: Extension of Due Dates for Tax Audit Report and ITR in AY 2020-21