Major updates relating to Vivad se Vishwas act, 2020 Dt. 22.04.2020

Vivad se Vishwas was announced as a dispute resolution scheme by Finance ministry to resolve the pending disputes under Income tax Act. It received assent of President on 17.03.2020 and became an act.

Earlier the first due date for this scheme was 31.03.2020 and after that people had to pay 10% more amount. However since the act was not presented in time and also due to the pandemic the due date was extended to 30.06.2020 vide ordinance.

Now on 22.04.2020 CBDT has issued a circular wherein few more FAQ’s has been answered to clarify the provisions of this act further which are as under:

1. The first clarification is with regard to earlier FAQ’s issued wherein reference was made to clauses of bill and now since the act has received assent of President the answer in that FAQ should be read as “section” instead of “clause”.

2. Second clarification is with regard to prosecution where it has been clarified that if initation of prosection has been issued but prosecution has not been instituted he will be eligible for filing declaration under this act. In case prosecution has been instituted one can file declaration under this act only if prosecution has been compounded before filing declaration.

The new FAQ is more or less similar to earlier FAQ and hence CBDT has now withdrawn the earlier circular once this circular has been issued.

You can read the full FAQ HERE.

This article is just for information purpose it is always advisable to hire a professional for practical execution. If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.