The Direct Tax Vivad se Vishwas Bill, 2020 |The LexSphere Library

SECTION Section 1

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•THE DIRECT TAX VIV AD SE VISHWAS ACT, 2020

NO.3 OF 2020

•[17th March, 2020.]

•An Act to provide for resolution of disputed tax and for matters connected

•therewith or incidental thereto.

•BE it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:—

SECTION Section 10

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7.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 Section 11

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•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.

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8.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.

SECTION Section 13

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9.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 Section 14

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•section 153C of the Income-tax 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;

•Time and

•manner of

payment.

•Immunity

•from

•initiation of

•proceedings in

•respect of

•offence and

•imposition of

•penalty in

•certain cases.

•No refund of

•amount paid.

•No benefit,

•concession or

•immunity to

declarant.

•Act not to

•apply in

•certain cases.

SEC.1] THE GAZETTE OF INDIA EXTRAORDINARY 7

•(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 on or before the filing of declaration:

•Provided that—

(i)such order of detention, being an order to which the provisions of

SECTION Section 15

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•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 Section 16

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•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 Section 17

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•section 9, of the said Act; or

•(iii) such order of detention, being an order to which the provisions of

SECTION Section 18

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•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, the Narcotic

•Drugs and Psychotropic Substances Act, 1985, the Prevention of Corruption Act,

•1988, the Prevention of Money Laundering Act, 2002, the Prohibition of Benami

•Property Transactions Act, 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 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 on or before the filing of declaration.

SECTION Section 19

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10.(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.

(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

•52 of 1974.

•37 of 1967.

•61 of 1985.

•49 of 1988.

•15 of 2003.

•45 of 1988.

•45 of 1860.

•27 of 1992.

•Power of

•Board to issue

•directions, etc.

•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.

SECTION Section 2

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1.This Act may be called the Direct Tax Vivad se Vishwas Act, 2020.

SECTION Section 20

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11.(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.

SECTION Section 21

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12.(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.

•————

DR.G. NARAYANA RAJU,

•Secretary to the Govt. of India.

•Power to

•remove

difficulties.

•Power to

•make rules.

•MGIPMRND—6054GI—17-03-2020.

•UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002

•AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

•8 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II— SEC. 1]

SECTION Section 3

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2.(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

•Short title.

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•xxxGIDHxxx

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•MINISTRY OF LAW AND JUSTICE

•(Legislative Department)

•New Delhi, the 17th March, 2020/Phalguna 27, 1941 ( Saka)

•The following Act of Parliament received the assent of the President on the

•17th March, 2020, and is hereby published for general information:—

•सी.जी.-डी.एल.-अ.-17032020-218716

•CG-DL-E-17032020-218716

•2 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—

•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 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;”;

(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;

(f)“disputed fee” means the fee determined under the provisions of the

•Income-tax Act, 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, 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, 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, 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;

•43 of 1961.

SEC.1] THE GAZETTE OF INDIA EXTRAORDINARY 3

(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 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

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•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.

(k)“Income-tax Act” means the Income-tax Act, 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.

(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.

SECTION Section 5

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3.Subject to the provisions of this Act, where a declarant files under the provisions of

•this Act on or before the last date, a declaration to the designated authority in accordance

•with the provisions of section 4 in respect of tax arrear, then, notwithstanding anything

•43 of 1961.

•Amount

•payable by

declarant.

•4 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—

•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:—

Sl.Nature of tax arrear. Amount payable Amount payable

No.under this Act on under this Act on or after

•or before the the 1st day of April, 2020

•31st day of but on or before the last date.

•March, 2020.

(a)where the tax arrear is amount of the the aggregate of the amount

•the aggregate amount disputed tax. of disputed tax and ten per

•of disputed tax, interest cent. of disputed tax:

•chargeable or charged

•on such disputed tax provided that where the ten per

•and penalty leviable or cent. of disputed tax exceeds

•levied on such disputed the aggregate amount of

tax.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 the aggregate of the aggregate of the amount

•includes the tax, interest the amount of of disputed tax and thirty-five

•or penalty determined disputed tax and per cent. of disputed tax:

•in any assessment twenty-five per

•on the basis of search cent. of the provided that where the thirty-

•under section 132 or disputed tax: five per cent. of disputed tax

SECTION Section 6

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•section 132A of the provided that where exceeds the aggregate amount

•Income-tax Act. the twenty-five per of interest chargeable or charged

cent.of disputed on such disputed tax and

•tax exceeds the penalty leviable or levied on

•aggregate amount such disputed tax, the excess

•of interest shall be ignored for the purpose

•chargeable or of computation of amount

•charged on such payable.

•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.

(c)where the tax arrear twenty-five per cent. thirty per cent. of disputed

•relates to disputed of disputed interest interest or disputed penalty or

•interest or disputed or disputed penalty disputed fee:

•penalty or disputed fee. or disputed fee.

•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:

SEC.1] THE GAZETTE OF INDIA EXTRAORDINARY 5

•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.

SECTION Section 7

Untitled Section

4.(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),

•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.

•Filing of

•declaration

•and particulars

•to be

furnished.

•6 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—

(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.

SECTION Section 8

Untitled Section

5.(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.

SECTION Section 9

Untitled Section

6.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.