Clarification in respect of the direct tax vivad se vishwas act,2020

With the objective to reduce pending income tax litigation and generate the timly revenue for the government of India and also the benefit taxpayers by providing them peace of mind,certainty and saving the times and avoid the long drawn vexatioous litigation process,the direct tax Vivad se VishwasAct 2020 had been amended by the taxation and other laws to provide certain relaxation in view of Covid-19 pandemic and also empowerthe Central government to notifycertain dates.

The central government has extended the date for payment without additional under vivad se vishwas from31st December to 31st March 2021.The said notification also notified the last date for filing the declaration by 31st December 2020 .

Under the existing provisions of section 5(2) ,the declarant is required to pay the amount within a period of 15 days from the receipt of certificate from the designated authority. As per the aforesaid notification,a declarant who file declaration on before 31st December 2020.Hence requiring payment by the declarant within a 15 days from the date of receipt of certificate from the designated authority may result into undue hardship for the declarant in whose case the period of 15 days expires before 31st March 2021.