The Direct Tax Vivad se Vishwas Act, 2020

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

(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 filedeither by him or by the income-tax authority or by both, before an appellate forum and suchappeal 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 hasbeen 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 anyappeal 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 section144C of the Income-tax Act, 1961 (43 of 1961) and the Dispute Resolution Panel has not issuedany direction on or before the specified date; (iv) a person in whose case the Dispute Resolution Panel has issued direction undersub-section (5) of section 144C of the Income-tax Act and the Assessing Officer has not passedany 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 Actand such application is pending as on the specified date;; 1[Explanation.-For the removal of doubts, it is hereby clarified that the expressionappellant shall not include and shall be deemed never to have been included a person in whosecase a writ petition or special leave petition or any other proceeding has been filed either by himor by the income-tax authority or by both before an appellate forum, arising out of an order of theSettlement Commission under Chapter XIX-A of the Income-tax Act, and such petition or appealis either pending or is disposed of.] (b) "appellate forum" means the Supreme Court or the High Court or the Income Tax AppellateTribunal 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-taxnotified 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(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 totalincome as is relatable to the disputed tax; (h) "disputed interest" means the interest determined in any case under the provisions of theIncome-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 theIncome-tax Act, 1961 (43 of 1961), where-- (i) such penalty is not levied or leviable in respect of disputed income or disputed tax, as thecase 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, meansthe 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 computedhereunder:-- (A) in a case where any appeal, writ petition or special leave petition is pending before theappellate forum as on the specified date, the amount of tax that is payable by the appellant if suchappeal 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 appellateforum on or before the specified date, and the time for filing appeal or special leave petitionagainst such order has not expired as on that date, the amount of tax payable by the appellant aftergiving effect to the order so passed; (C) in a case where the order has been passed by the Assessing Officer on or before thespecified date, and the time for filing appeal against such order has not expired as on that date, theamount 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 ResolutionPanel under section 144C of the Income-tax Act as on the specified date, the amount of taxpayable by the appellant if the Dispute Resolution Panel was to confirm the variation proposed inthe 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 undersub-section (13) of that section on or before the specified date, the amount of tax payable by theappellant 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 ispending as on the specified date, the amount of tax payable by the appellant if such applicationfor revision was not to be accepted: Provided that in a case where Commissioner (Appeals) has issued notice of enhancementunder section 251 of the Income-tax Act on or before the specified date, the disputed tax shall beincreased by the amount of tax pertaining to issues for which notice of enhancement has beenissued: Provided further that in a case where the dispute in relation to an assessment year relates toreduction of tax credit under section 115JAA or section 115JD of the Income-tax Act or any lossor 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 tocarry 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 expressiondisputed tax, in relation to an assessment year or financial year, as the case may be, shall notinclude 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 OfficialGazette; (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 taxarrear shall not include and shall be deemed never to have been included any sum payable eitherby way of tax, penalty or interest pursuant to an order passed by the Settlement Commissionunder 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 shallhave the meanings respectively assigned to them in that Act.

Subject to the provisions of this Act, where a declarant files1[under the provisions of this Act on or before the such date* as may be notified], a declaration to thedesignated 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, theamount payable by the declarant under this Act shall be as under, namely:-- SI.NONature of tax arrear. Amount payable underthis Act on or before the2[31st day of December,2020 or such later dateas may be notified].Amount payable under this Act on or after the 3[1st day of January, 2021 or such later date as may be notified] but on or before the last date. (a) where the tax arrear is the aggregateamount of disputed tax, interestchargeable or charged on suchdisputed tax and penalty leviable orlevied on such disputed tax.amount of the disputedtax.the aggregate of theamount of disputedtax and ten per cent.of disputed tax:provided that wherethe ten per cent. ofdisputed tax exceedsthe aggregate amountof interest chargeableor charged on suchdisputed tax andpenalty leviable orlevied on suchdisputed tax, the excess shall beignored forthepurpose ofcomputation ofamount payableunder this Act . (b)where the tax arrear includes thetax, interest or penalty determinedin any assessment on the basis ofsearch under section 132 or section132A of the Income-tax Act.the aggregate of theamount of disputedtax and twenty-fiveper cent. of thedisputed tax:provided that where thetwenty-five per cent. ofdisputed tax exceeds theaggregate amount ofinterest chargeable orcharged on suchdisputed tax and penaltyleviable or levied onsuch disputed tax, theexcess shall be ignoredfor the purpose ofcomputation of amountpayable under this Act. the aggregate of theamount of disputedtax and thirty-five percent. of disputed tax:provided that wherethe thirty- five percent. of disputed taxexceeds the aggregateamount of interestchargeable or chargedon such disputedtax and penaltyleviable or levied onsuch disputed tax, theexcess shall beignored for thepurpose ofcomputation ofamount payable. (c)where the tax arrear relates todisputed interest or disputedpenalty or disputed fee.twenty-five per cent.of disputed interestor disputed penaltyor disputed fee.thirty per cent. ofdisputed interest ordisputed penalty ordisputed fee: Provided that in a case where an appeal or writ petition or special leave petition is filed by theincome-tax authority on any issue before the appellate forum, the amount payable shall be one-half of theamount 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) orobjections is filed before the Dispute Resolution Panel by the appellant on any issue on which he hasalready got a decision in his favour from the Income Tax Appellate Tribunal (where the decision on suchissue is not reversed by the High Court or the Supreme Court) or the High Court (where the decision onsuch issue is not reversed by the Supreme Court), the amount payable shall be one-half of the amount inthe 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 IncomeTax Appellate Tribunal on which he has already got a decision in his favour from the High Court (wherethe decision on such issue is not reversed by the Supreme Court), the amount payable shall be one-half ofthe amount in the Table above calculated on such issue, in such manner as may be prescribed.

(1) The declaration referred to in section3 shall be filed by the declarant before the designated authority in such form and verified in such manneras may be prescribed. (2) Upon the filing the declaration, any appeal pending before the Income Tax Appellate Tribunal orCommissioner (Appeals), in respect of the disputed income or disputed interest or disputed penalty ordisputed fee and tax arrear shall be deemed to have been withdrawn from the date on which certificateunder 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 theHigh Court or the Supreme Court against any order in respect of tax arrear, he shall withdraw such appealor writ petition with the leave of the Court wherever required after issuance of certificate undersub-section (1) of section 5 and furnish proof of such withdrawal alongwith the intimation of payment tothe designated authority under sub-section (2) of section 5. (4) Where the declarant has initiated any proceeding for arbitration, conciliation or mediation, or hasgiven any notice thereof under any law for the time being in force or under any agreement entered into byIndia 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 undersub-section (1) of section 5 and furnish proof of such withdrawal alongwith the intimation of payment tothe 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 anundertaking waiving his right, whether direct or indirect, to seek or pursue any remedy or any claim inrelation to the tax arrear which may otherwise be available to him under any law for the time being inforce, in equity, under statute or under any agreement entered into by India with any country or territoryoutside India whether for protection of investment or otherwise and the undertaking shall be made in suchform 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 himunder sub-section (5), and in such cases, all the proceedings and claims which were withdrawn under section 4 and all theconsequences 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 relatingto the tax arrear mentioned in the declaration in respect of which an order has been made undersub-section (1) of section 5 by the designated authority or the payment of sum determined under thatsection.

(1) The designated authority shall, within a period of fifteendays from the date of receipt of the declaration, by order, determine the amount payable by the declarantin accordance with the provisions of this Act and grant a certificate to the declarant containing particularsof 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 thedate of receipt of the certificate and intimate the details of such payment to the designated authority in theprescribed form and thereupon the designated authority shall pass an order stating that the declarant haspaid the amount. (3) Every order passed under sub-section (1), determining the amount payable under this Act, shall beconclusive as to the matters stated therein and no matter covered by such order shall be reopened in anyother proceeding under the Income-tax Act or under any other law for the time being in force or underany agreement, whether for protection of investment or otherwise, entered into by India with any othercountry or territory outside India. Explanation.--For the removal of doubts, it is hereby clarified that making a declaration under thisAct shall not amount to conceding the tax position and it shall not be lawful for the income-tax authorityor the declarant being a party in appeal or writ petition or special leave petition to contend that thedeclarant or the income-tax authority, as the case may be, has acquiesced in the decision on the disputedissue by settling the dispute.