Clarification on provisions of the Direct Tax Vivad se Vishwas Act, 2020

Vivad se Vishwas settlement permits final resolution of pending income tax disputes through declaration and prescribed payment.

The Direct Tax Vivad Se Vishwas Act, 2020 enables final settlement of specified pending income tax disputes by filing a declaration and paying an amount determined by the Designated Authority; covered matters include appeals, writs, SLPs, DRP proceedings, revision applications and arbitrations where total income is determined, subject to exclusions for certain AAR matters, search related thresholds and instituted prosecutions. The DA computes disputed tax, credits prior payments, issues a certificate, and upon payment the DA's order waives specified interest and penalties and bars further proceedings in respect of the settled tax arrears.