Clarifications on provisions of the Direct Tax Vivad se Vishwas Bill, 2020

Vivad se Vishwas dispute resolution: streamlined settlement requires percentage-based payment of disputed tax and grants immunity when paid.

The circular explains Vivad se Vishwas as a voluntary settlement framework covering specified pending income-tax appeals, writs, DRP matters, revision applications and arbitral proceedings, while excluding certain categories; it prescribes calculation of disputed tax (including adjustments for rectifications and prior payments), tiered percentage payments depending on timing and case-type, credit for taxes already paid, DA determination and certification procedures, non-refundability of payments, withdrawal and adjustment mechanics, waiver of interest and penalty on settled arrears, and immunity from prosecution, without treating settlement as concession of the tax position.