CBDT further clarifies on provisions of the Direct Tax Vivad se Vishwas Act, 2020

Apr 28, 2020 | by Avantis RegTech Legal Research Team

Finance & Taxation Compliance

The Central Board of Direct Taxes (CBDT) on April 22, 2020, further clarifies on the provisions of the Direct Tax Vivad se Vishwas Act, 2020.

'Vivad se Vishwas Bill, 2020' was introduced to provide for dispute resolution in respect of pending income tax litigation. Subsequently, based on the representations received from the stakeholders regarding its various provisions, official amendments to the Bill were proposed. These amendments sought to widen the scope of the bill and reduce the compliance burden on taxpayers.

Whereas, the Bill has been enacted as The Direct Tax Vivad Se Vishwas Act, 2020 (Vivas se Vishwas). The objective of Vivad se Vishwas is to inter alia reduce pending income tax litigation, generate timely revenue for the Government and benefit the taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process.

And whereas, 55 questions contained in Circular No. 7 of 2020 are reissued under below mentioned categories:

Ø  Questions of scope and eligibility

Ø  Questions related to calculation

Ø  Questions related to procedure

Ø  Questions related to consequences

However, on issuance of this Circular, Circular No. 07 of 2020 dated March 04, 2020 is hereby withdrawn.

[Circular No. 09/2020]


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