The Direct Tax Vivad se Vishwas Act, 2020

The Direct Tax Vivad Se Vishwas Act, 2020, is an Act passed by Parliament in the Seventy-first Year of the Republic of India to provide for resolution of disputed tax and for matters connected therewith or incidental thereto.

Key Features:
- The Act provides a mechanism for resolving disputes related to taxes.
- It aims to simplify the process of dispute resolution and make it more efficient.
- The Act applies to taxpayers who have filed appeals, writ petitions, or special leave petitions in respect of their tax liabilities before an appellate forum as on the specified date.

Definitions:
- 'Appellant' means a person who has filed an appeal or writ petition or special leave petition against his tax liability before an appellate forum.
- 'Declarant' is a person who files a declaration under section 4 in respect of tax arrears.
- 'Disputed income', 'disputed interest', and 'disputed penalty' refer to specific types of disputed amounts that are subject to the Act.

Amount Payable by Declarant:
The amount payable by a declarant is calculated based on the nature of the tax arrear. The amount includes the total amount of tax, interest, and penalty due, with certain percentages applied depending on whether the dispute relates to an assessment year or financial year.

Filing of Declaration and Particulars to be Furnished:
The declaration must be filed by the declarant before the designated authority in a specified form and verified. The declaration will be deemed to have been withdrawn if a certificate is issued under section 5.

Immunity from Initiation of Proceedings:
No proceedings or penalties can be initiated against a declarant for tax arrears that are covered by this Act, unless certain exceptions apply.

Power to Remove Difficulties:
The Central Government has the power to remove difficulties in giving effect to the provisions of this Act through an order not inconsistent with the provisions of the Act.

Power to Make Rules:
The Central Government can make rules for carrying out the provisions of this Act.