Payment deadline under tax dispute scheme extended

VIVAD SE VISHWAS SCHEME PROVIDES FOR SETTLEMENT OF DISPUTED TAX, INTEREST AND PENALTY

NEW DELHI: The government has extended the last date for payment of amount under the direct tax amnesty scheme ‘Vivad se Vishwas’ (from dispute to trust) without any additional charge by one month to September 30, 2021 due to technical reasons, the Central Board of Direct Taxes (CBDT) said in a statement on Saturday.

“Considering the difficulties being faced in issuing and amending Form no 3, which is a prerequisite for making payment by the declarant under ‘Vivad se Vishwas’ Act, it has been decided to extend the last date of payment of the amount (without any additional amount) to 30th September, 2021,” it said. Necessary notification to this effect shall be issued shortly, it added.

CBDT clarified that there is no proposal to change the last date of payment with “additional” amount, which remains October 31, 2021.

The scheme, which was enacted on March 17, 2020, closed on March 31 this year. However, taxpayers who have already made declaration within the stipulated deadline of March 31 could make payment without any additional amount or penalty up to September 30, 2021. As per the previous notification dated June 25, the last date of payment of the settled amount without any additional charge was August 31, and with additional amount was October 31, 2021.

The Vivad se Vishwas scheme provides for settlement of disputed tax, disputed interest, disputed penalty or disputed fees in relation to an assessment or reassessment order. It grants immunity to taxpayers from levy of interest, penalty and institution of any proceeding for prosecution for any offence under the Income-tax Act in respect of matters covered in the declaration.

Finance minister Nirmala Sitharaman had announced the

scheme in the Union Budget presented on February 1, 2020. It aimed to resolve legacy disputes involving direct taxes. Under the scheme, penalty and interest would be waived if the disputed amount is paid before the stipulated date.