Direct Tax Alert - CBDT further extends time limit of payment (without additional amount) under Direct Tax Vivad se Vishwas Act, 2020

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	Extended deadline (As per Notification 75 dated 25 June 2021)	Revised deadline as per current notification
Payment of amount determined under VsV (without additional amount)	31 August 2021	30 September 2021
Payment of amount determined under VsV (with additional amount)	31 October 2021	31 October 2021

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).

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