Direct Tax Alert - CBDT further extends time limit of payment (without additional amount) under Direct Tax Vivad se Vishwas Act, 2020
02 September 2021
Background
In light of the ongoing COVID-19 pandemic, the Central Board of Direct Taxes (CBDT) had extended deadlines of certain Income-tax compliances[1] by issuing circulars in the month of April, May[2] and June[3] 2021. While the impact of the second wave of COVID-19 has subsided and businesses are returning to normalcy, the taxpayers are still facing technical glitches in filing various forms on the new income-tax portal. Due to such technical glitches on the income tax portal, recently, the CBDT extended timelines for electronic filing of several Forms under the provisions of the Income-tax Act, 1961 (IT Act). Certificate in Form No. 3 which is a pre-requisite for making payment by the declarant under Direct Tax Vivad se Vishwas Act, 2020 (VsV Act), is also dependent on the new income-tax portal. With the tax authorities facing difficulties in issuing and amending Form no. 3, the CBDT has recently issued a notification[4] to further extend the last date for payment of the VsV amount.
We, at BDO in India, have analysed and summarised the said circular hereunder:
Particulars
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Extended deadline
(As per Notification 75 dated 25 June 2021)
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Revised deadline as per current notification
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Payment of amount determined under VsV (without additional amount)
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31 August 2021
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30 September 2021
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Payment of amount determined under VsV (with additional amount)
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31 October 2021
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31 October 2021
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BDO Comments
While the Notification has not extended the deadline for payment (with additional amount), it is imperative to note that in the Press Release[5] it has been clarified that there won’t be any change in the last date of 31 October 2021 for payment (with additional amount).
[4] Notification No. 94/2021/F. No. IT(A)/01/2020-TPL (Part I), dated 31 August 2021
[5] Press Release dated 29 August 2021