1. Short title.—This Act may be called the Direct Tax Vivad se Vishwas Act, 2020.
2. Definitions.—(1) In this Act, unless the context otherwise requires,—
‘(a) “appellant” means—
(i) a person in whose case an appeal or a writ petition or special leave petition has been filed
either by him or by the income-tax authority or by both, before an appellate forum and such
appeal or petition is pending as on the specified date;
(ii) a person in whose case an order has been passed by the Assessing Officer, or an order has
been passed by the Commissioner (Appeals) or the Income Tax Appellate Tribunal in an appeal,
or by the High Court in a writ petition, on or before the specified date, and the time for filing any
appeal or special leave petition against such order by that person has not expired as on that date;
(iii) a person who has filed his objections before the Dispute Resolution Panel under section
144C of the Income-tax Act, 1961 (43 of 1961) and the Dispute Resolution Panel has not issued
any direction on or before the specified date;
(iv) a person in whose case the Dispute Resolution Panel has issued direction under
sub-section (5) of section 144C of the Income-tax Act and the Assessing Officer has not passed
any order under sub-section (13) of that section on or before the specified date;
(v) a person who has filed an application for revision under section 264 of the Income-tax Act
and such application is pending as on the specified date;”;
1
[Explanation.—For the removal of doubts, it is hereby clarified that the expression
“appellant” shall not include and shall be deemed never to have been included a person in whose
case a writ petition or special leave petition or any other proceeding has been filed either by him
or by the income-tax authority or by both before an appellate forum, arising out of an order of the
Settlement Commission under Chapter XIX-A of the Income-tax Act, and such petition or appeal
is either pending or is disposed of.]
(b) “appellate forum” means the Supreme Court or the High Court or the Income Tax Appellate
Tribunal or the Commissioner (Appeals);
(c) “declarant” means a person who files declaration under section 4;
(d) “declaration” means the declaration filed under section 4;
(e) “designated authority” means an officer not below the rank of a Commissioner of Income-tax
notified by the Principal Chief Commissioner for the purposes of this Act;
1. Ins. by Act 13 of 2021, s. 172 (w.e.f. 17-03-2020).
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(f) “disputed fee” means the fee determined under the provisions of the Income-tax Act, 1961
(43 of 1961) in respect of which appeal has been filed by the appellant;
(g) “disputed income”, in relation to an assessment year, means the whole or so much of the total
income as is relatable to the disputed tax;
(h) “disputed interest” means the interest determined in any case under the provisions of the
Income-tax Act, 1961 (43 of 1961), where—
(i) such interest is not charged or chargeable on disputed tax;
(ii) an appeal has been filed by the appellant in respect of such interest;
(i) “disputed penalty” means the penalty determined in any case under the provisions of the
Income-tax Act, 1961 (43 of 1961), where—
(i) such penalty is not levied or leviable in respect of disputed income or disputed tax, as the
case may be;
(ii) an appeal has been filed by the appellant in respect of such penalty;
(j) “disputed tax”, in relation to an assessment year or financial year, as the case may be, means
the income-tax, including surcharge and cess (hereafter in this clause referred to as the amount of tax)
payable by the appellant under the provisions of the Income-tax Act, 1961 (43 of 1961), as computed
hereunder:—
(A) in a case where any appeal, writ petition or special leave petition is pending before the
appellate forum as on the specified date, the amount of tax that is payable by the appellant if such
appeal or writ petition or special leave petition was to be decided against him;
(B) in a case where an order in an appeal or in writ petition has been passed by the appellate
forum on or before the specified date, and the time for filing appeal or special leave petition
against such order has not expired as on that date, the amount of tax payable by the appellant after
giving effect to the order so passed;
(C) in a case where the order has been passed by the Assessing Officer on or before the
specified date, and the time for filing appeal against such order has not expired as on that date, the
amount of tax payable by the appellant in accordance with such order;
(D) in a case where objection filed by the appellant is pending before the Dispute Resolution
Panel under section 144C of the Income-tax Act as on the specified date, the amount of tax
payable by the appellant if the Dispute Resolution Panel was to confirm the variation proposed in
the draft order;
(E) in a case where Dispute Resolution Panel has issued any direction under sub-section (5)
of section 144C of the Income-tax Act and the Assessing Officer has not passed the order under
sub-section (13) of that section on or before the specified date, the amount of tax payable by the
appellant as per the assessment order to be passed by the Assessing Officer under sub-section
(13) thereof;
(F) in a case where an application for revision under section 264 of the Income-tax Act is
pending as on the specified date, the amount of tax payable by the appellant if such application
for revision was not to be accepted:
Provided that in a case where Commissioner (Appeals) has issued notice of enhancement
under section 251 of the Income-tax Act on or before the specified date, the disputed tax shall be
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increased by the amount of tax pertaining to issues for which notice of enhancement has been
issued:
Provided further that in a case where the dispute in relation to an assessment year relates to
reduction of tax credit under section 115JAA or section 115D of the Income-tax Act or any loss
or depreciation computed thereunder, the appellant shall have an option either to include the
amount of tax related to such tax credit or loss or depreciation in the amount of disputed tax, or to
carry forward the reduced tax credit or loss or depreciation, in such manner as may be prescribed.
1
[Explanation.—For the removal of doubts, it is hereby clarified that the expression
“disputed tax”, in relation to an assessment year or financial year, as the case may be, shall not
include and shall be deemed never to have been included any sum payable either by way of tax,
penalty or interest pursuant to an order passed by the Settlement Commission under Chapter XIXA of the Income-tax Act.]
(k) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961);
(l) “last date” means such date as may be notified by the Central Government in the Official
Gazette;
(m) “prescribed” means prescribed by rules made under this Act;
(n) “specified date” means the 31st day of January, 2020;
(o) “tax arrear” means,—
(i) the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax,
and penalty leviable or levied on such disputed tax; or
(ii) disputed interest; or
(iii) disputed penalty; or
(iv) disputed fee,
as determined under the provisions of the Income-tax Act.
1
[Explanation.—For the removal of doubts, it is hereby clarified that the expression “tax
arrear” shall not include and shall be deemed never to have been included any sum payable either
by way of tax, penalty or interest pursuant to an order passed by the Settlement Commission
under Chapter XIX-A of the Income-tax Act.]
(2) The words and expressions used herein and not defined but defined in the Income-tax Act shall
have the meanings respectively assigned to them in that Act.
3. Amount payable by declarant.—Subject to the provisions of this Act, where a declarant files
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[under the provisions of this Act on or before the such date as may be notified], a declaration to the
designated authority in accordance with the provisions of section 4 in respect of tax arrear, then,
notwithstanding anything contained in the Income-tax Act or any other law for the time being in force, the
amount payable by the declarant under this Act shall be as under, namely:—
SI. NO Nature of tax arrear. Amount payable under
this Act on or before the
3
[31st day of December,
2020 or such later date
as may be notified].
Amount payable under
this Act on or after the
4
[1st day of January,
2021 or such later date
as may be notified] but
1. Ins. by Act 13 of 2021, s. 172 (w.e.f. 17-03-2020).
2. Subs. by Act 38 of 2020, s. 5, for “under the provisions of this Act on or before the last date” (w.e.f. 31-3-2020).
3. Subs. by s. 5, ibid., for “31st day of March, 2020” (w.e.f. 31-3-2020).
4. Subs. by s. 5, ibid., for “1st day of April, 2020” (w.e.f. 31-3-2020).
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on or before the last
date.
(a) where the tax arrear is the aggregate
amount of disputed tax, interest
chargeable or charged on such
disputed tax and penalty leviable or
levied on such disputed tax.
amount of the disputed
tax.
the aggregate of the
amount of disputed
tax and ten per cent.
of disputed tax:
provided that where
the ten per cent. of
disputed tax exceeds
the aggregate amount
of interest chargeable
or charged on such
disputed tax and
penalty leviable or
levied on such
disputed tax, the
excess shall be
ignored for the
purpose of
computation of
amount payable
under this Act .
(b)
where the tax arrear includes the
tax, interest or penalty determined
in any assessment on the basis of
search under section 132 or section
132A of the Income-tax Act.
the aggregate of the
amount of disputed
tax and twenty-five
per cent. of the
disputed tax:
provided that where the
twenty-five per cent. of
disputed tax exceeds the
aggregate amount of
interest chargeable or
charged on such
disputed tax and penalty
leviable or levied on
such disputed tax, the
excess shall be ignored
for the purpose of
computation of amount
payable under this Act.
the aggregate of the
amount of disputed
tax and thirty-five per
cent. of disputed tax:
provided that where
the thirty- five per
cent. of disputed tax
exceeds the aggregate
amount of interest
chargeable or charged
on such disputed
tax and penalty
leviable or levied on
such disputed tax, the
excess shall be
ignored for the
purpose of
computation of
amount payable.
(c)
where the tax arrear relates to
disputed interest or disputed
penalty or disputed fee.
twenty-five per cent.
of disputed interest
or disputed penalty
or disputed fee.
thirty per cent. of
disputed interest or
disputed penalty or
disputed fee:
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Provided that in a case where an appeal or writ petition or special leave petition is filed by the
income-tax authority on any issue before the appellate forum, the amount payable shall be one-half of the
amount in the Table above calculated on such issue, in such manner as may be prescribed:
Provided further that in a case where an appeal is filed before the Commissioner (Appeals) or
objections is filed before the Dispute Resolution Panel by the appellant on any issue on which he has
already got a decision in his favour from the Income Tax Appellate Tribunal (where the decision on such
issue is not reversed by the High Court or the Supreme Court) or the High Court (where the decision on
such issue is not reversed by the Supreme Court), the amount payable shall be one-half of the amount in
the Table above calculated on such issue, in such manner as may be prescribed:
Provided also that in a case where an appeal is filed by the appellant on any issue before the Income
Tax Appellate Tribunal on which he has already got a decision in his favour from the High Court (where
the decision on such issue is not reversed by the Supreme Court), the amount payable shall be one-half of
the amount in the Table above calculated on such issue, in such manner as may be prescribed.
4. Filing of declaration and particulars to be furnished.—(1) The declaration referred to in section
3 shall be filed by the declarant before the designated authority in such form and verified in such manner
as may be prescribed.
(2) Upon the filing the declaration, any appeal pending before the Income Tax Appellate Tribunal or
Commissioner (Appeals), in respect of the disputed income or disputed interest or disputed penalty or
disputed fee and tax arrear shall be deemed to have been withdrawn from the date on which certificate
under sub-section (1) of section 5 is issued by the designated authority.
(3) Where the declarant has filed any appeal before the appellate forum or any writ petition before the
High Court or the Supreme Court against any order in respect of tax arrear, he shall withdraw such appeal
or writ petition with the leave of the Court wherever required after issuance of certificate under
sub-section (1) of section 5 and furnish proof of such withdrawal alongwith the intimation of payment to
the designated authority under sub-section (2) of section 5.
(4) Where the declarant has initiated any proceeding for arbitration, conciliation or mediation, or has
given any notice thereof under any law for the time being in force or under any agreement entered into by
India with any other country or territory outside India whether for protection of investment or otherwise,
he shall withdraw the claim, if any, in such proceedings or notice after issuance of certificate under
sub-section (1) of section 5 and furnish proof of such withdrawal alongwith the intimation of payment to
the designated authority under sub-section (2) of section 5.
(5) Without prejudice to the provisions of sub-sections (2), (3) and (4), the declarant shall furnish an
undertaking waiving his right, whether direct or indirect, to seek or pursue any remedy or any claim in
relation to the tax arrear which may otherwise be available to him under any law for the time being in
force, in equity, under statute or under any agreement entered into by India with any country or territory
outside India whether for protection of investment or otherwise and the undertaking shall be made in such
form and manner as may be prescribed.
(6) The declaration under sub-section (1) shall be presumed never to have been made if,—
(a) any material particular furnished in the declaration is found to be false at any stage;
(b) the declarant violates any of the conditions referred to in this Act;
(c) the declarant acts in any manner which is not in accordance with the undertaking given by him
under sub-section (5),
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and in such cases, all the proceedings and claims which were withdrawn under section 4 and all the
consequences under the Income-tax Act against the declarant shall be deemed to have been revived.
(7) No appellate forum or arbitrator, conciliator or mediator shall proceed to decide any issue relating
to the tax arrear mentioned in the declaration in respect of which an order has been made under
sub-section (1) of section 5 by the designated authority or the payment of sum determined under that
section.
5. Time and manner of payment.—(1) The designated authority shall, within a period of fifteen
days from the date of receipt of the declaration, by order, determine the amount payable by the declarant
in accordance with the provisions of this Act and grant a certificate to the declarant containing particulars
of the tax arrear and the amount payable after such determination, in such form as may be prescribed.
(2) The declarant shall pay the amount determined under sub-section (1) within fifteen days of the
date of receipt of the certificate and intimate the details of such payment to the designated authority in the
prescribed form and thereupon the designated authority shall pass an order stating that the declarant has
paid the amount.
(3) Every order passed under sub-section (1), determining the amount payable under this Act, shall be
conclusive as to the matters stated therein and no matter covered by such order shall be reopened in any
other proceeding under the Income-tax Act or under any other law for the time being in force or under
any agreement, whether for protection of investment or otherwise, entered into by India with any other
country or territory outside India.
Explanation.—For the removal of doubts, it is hereby clarified that making a declaration under this
Act shall not amount to conceding the tax position and it shall not be lawful for the income-tax authority
or the declarant being a party in appeal or writ petition or special leave petition to contend that the
declarant or the income-tax authority, as the case may be, has acquiesced in the decision on the disputed
issue by settling the dispute.
6. Immunity from initiation of proceedings in respect of offence and imposition of penalty in
certain cases.—Subject to the provisions of section 5, the designated authority shall not institute any
proceeding in respect of an offence; or impose or levy any penalty; or charge any interest under the
Income-tax Act in respect of tax arrear.
7. No refund of amount paid.—Any amount paid in pursuance of a declaration made under section 4
shall not be refundable under any circumstances.
Explanation.—For the removal of doubts, it is hereby clarified that where the declarant had, before
filing the declaration under sub-section (1) of section 4, paid any amount under the Income-tax Act in
respect of his tax arrear which exceeds the amount payable under section 3, he shall be entitled to a refund
of such excess amount, but shall not be entitled to interest on such excess amount under section 244A of
the Income-tax Act.
8. No benefit, concession or immunity to declarant.—Save as otherwise expressly provided in
sub-section (3) of section 5 or section 6, nothing contained in this Act shall be construed as conferring
any benefit, concession or immunity on the declarant in any proceedings other than those in relation to
which the declaration has been made.
9. Act not to apply in certain cases.—The provisions of this Act shall not apply—
(a) in respect of tax arrear,—
(i) relating to an assessment year in respect of which an assessment has been made under
sub-section (3) of section 143 or section 144 or section 153A or section 153C of the Income-tax
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Act on the basis of search initiated under section 132 or section 132A of the Income-tax Act, if
the amount of disputed tax exceeds five crore rupees;
(ii) relating to an assessment year in respect of which prosecution has been instituted on or
before the date of filing of declaration;
(iii) relating to any undisclosed income from a source located outside India or undisclosed
asset located outside India;
(iv) relating to an assessment or reassessment made on the basis of information received
under an agreement referred to in section 90 or section 90A of the Income-tax Act, if it relates to
any tax arrear;
(b) to any person in respect of whom an order of detention has been made under the provisions of
the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of
1974) on or before the filing of declaration:
Provided that—
(i) such order of detention, being an order to which the provisions of section 9 or section 12A
of the said Act do not apply, has not been revoked on the report of the Advisory Board under
section 8 of the said Act or before the receipt of the report of the Advisory Board; or
(ii) such order of detention, being an order to which the provisions of section 9 of the said Act
apply, has not been revoked before the expiry of the time for, or on the basis of, the review under
sub-section (3) of section 9, or on the report of the Advisory Board under section 8, read with
sub-section (2) of section 9, of the said Act; or
(iii) such order of detention, being an order to which the provisions of section 12A of the said
Act apply, has not been revoked before the expiry of the time for, or on the basis of, the first
review under sub-section (3) of that section, or on the basis of the report of the Advisory Board
under section 8, read with sub-section (6) of section 12A, of the said Act; or
(iv) such order of detention has not been set aside by a court of competent jurisdiction;
(c) to any person in respect of whom prosecution for any offence punishable under the provisions
of the Unlawful Activities (Prevention) Act, 1967 (37 of 1967), the Narcotic Drugs and Psychotropic
Substances Act, 1985 (61 of 1985), the Prevention of Corruption Act, 1988 (49 of 1988), the
Prevention of Money Laundering Act, 2002 (15 of 2003), the Prohibition of Benami Property
Transactions Act, 1988 (45 of 1988) has been instituted on or before the filing of the declaration or
such person has been convicted of any such offence punishable under any of those Acts;
(d) to any person in respect of whom prosecution has been initiated by an Income-tax authority
for any offence punishable under the provisions of the Indian Penal Code (45 of 1860) or for the
purpose of enforcement of any civil liability under any law for the time being in force, on or before
the filing of the declaration or such person has been convicted of any such offence consequent to the
prosecution initiated by an Income tax authority;
(e) to any person notified under section 3 of the Special Court (Trial of Offences Relating to
Transactions in Securities) Act, 1992 (27 of 1992) on or before the filing of declaration.
10. Power of Board to issue directions, etc.—(1) The Central Board of Direct Taxes may, from time
to time, issue such directions or orders to the income-tax authorities, as it may deem fit:
Provided that no direction or order shall be issued so as to require any designated authority to dispose
of a particular case in a particular manner.
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(2) Without prejudice to the generality of the foregoing power, the said Board may, if it considers
necessary or expedient so to do, for the purpose of this Act, including collection of revenue, issue from
time to time, general or special orders in respect of any class of cases, setting forth directions or
instructions as to the guidelines, principles or procedures to be followed by the authorities in any work
relating to this Act, including collection of revenue and issue such order, if the Board is of the opinion
that it is necessary in the public interest so to do.
11. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of
this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove
the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the date on
which the provisions of this Act come into force.
(2) Every order made under sub-section (1) shall, as soon as may be after it is made, be laid before
each House of Parliament.
12. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,
make rules for carrying out the provisions of this Act.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any
of the following matters, namely:—
(a) the form in which a declaration may be made, and the manner of its verification under
section 4;
(b) the form and manner in which declarant shall furnish undertaking under sub-section (5) of
section 4;
(c) the form in which certificate shall be granted under sub-section (1) of section 5;
(d) the form in which payment shall be intimated under sub-section (2) of section 5;
(e) determination of disputed tax including the manner of set-off in respect of brought forward or
carry forward of tax credit under section 115JAA or section 115JD of the Income-tax Act or set-off in
respect of brought forward or carry forward of loss or allowance of depreciation under the provisions
of the Income-tax Act;
(f) the manner of calculating the amount payable under this Act;
(g) any other matter which is to be, or may be, prescribed, or in respect of which provision is to
be made, by rules.
(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it
is made, before each House of Parliament, while it is in session, for a total period of thirty days, which
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the
session immediately following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the validity of anything previously done
under that rule.