CBDT Notification on Direct Tax Vivad Se Vishwas Rules 2020 with Forms


MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 18/2020-Income Tax

New Delhi, the 18th Mach, 2020

The Direct Tax Vivad Se Vishwas Rules 2020

S.O. 1129(E).—In exercise of the powers conferred by sub-section (2) of section 12 real with sub-sections (1) and (5) of section 4 and sub-sections (1) and (2) of section 5 of the Direct Tax Vival se Vishwas Act, 2020 (3 of 2020), the Central Government hereby makes the following rules, namely:?

1. Short title and commencement.-(1) These rules may be called the Direct Tax Vival se Vishwas Rules, 2020.
(2) They shall come into force on the date of their notification in the Official Gazette.

2. Definitions-In these rules, unless the context otherwise requires

(a) “Act” means the Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020);

(b) “dispute” means appeal, writ or special leave petition filed or appeal or special leave petition to be filed by the declarant or the income-tax authority before the Appellate Forum, or arbitration, conciliation or mediation initiated or given notice thereof, or objections filed or to be filed before the Dispute Resolution Panel under section 144 of the section 264 of the Income-tax Act;

(c) “eligible search cases” n made under sub-section (3) of section 143 or section 144 or section 153A or section 153C of the Income-tax Act on the basis of search initiated under section 132 or section 132A of the Income-tax Act and the amount of disputed tax does not exceeds five crore rupees;

(d) “Form” means the Forms appended to these rules;

(e) “issues covered in favour of the declarant” means issues in respect of which –

(i) an appeal or writ or special leave petition is filed or appeal or special leave petition is to be filed by the income-tax authority before the appellate forum or

(ii) an appeal is filed or to be filed before the Commissioner (Appeals) or objections is filed or to be filed before the Dispute Resolution Panel by the dedarant, on which he has already got a decision in his favour from Income Tax Appellate Tribunal (where the decision on such issue is not reversed by the High Court or the Supreme Court) or the High Court (where the decision on such issue is not reversed by the Supreme Court), or

(iii) an appeal is filed or to be filed by the ded arant before Income Tax Appellate Tribunal on which he has already got a decision in his favour from the High Court (where the decision on such issue is not reversed by the Supreme Court);

(f) “section” means section of the Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020);

(g) the words and expressions used in these rules and not defined but defined in the Act or Income-tax Act,1961 shall have the same meanings respectively as assigned to them in those Acta

3. Form of declaration and undertaking.-(1) The declaration under sub-section (1) of section 4 shall be male in Form-1 to the designated authority.

(2) The undertaking referred to in sub-section (5) of section 4 shall be furnished in Form-2 along with the declaration.

(3) The dedaration under sub-rule (1) and the undertaking under sub-rule (2), as the case may be, shall be signed and verified by the dedarant or any person competent to verify the return of income on his behalf in accordance with section 140 of the Income-tax Act, 1961.

(4) The designated authority on receipt of dedaration shall issue a receipt electronically in acknowledgement thereof.

4. Form of certificate by designated authority.- The designated authority shall grant a certificate electronically referred to in sub-section (1) of section 5 in Form-3.

5. Intimation of payment.- The detail of payments male pursuant to the certificate issued by the designated authority shall be furnished along with proof of withdrawal of appeal, objection, application, writ petition, sped al leave petition, arbitration, conciliation, mediation or claim filed by the dedarant to the designated authority in Form-4.

6. Manner of furnishing.- The Form-1 and Form-2 referred to in rule 3 and Form-4 referred to in rule 5 shall be furnished electronically under digital signature, if the return of income is required to be furnished under digital signature or, in other cases through electronic verification code.

Explanation. – For the purpose of this rule, “electronic verification code” shall have the same meaning as referred to in rule 12 of the Income-tax Rules, 1962.

7. Order by designated authority .-The order by the desi nated authority under sub-section (2) of section 5, in respect of payment sate granted under sub-section (1) of section 5, shall be in Form-5.

8. Laying down of procedure, formats and standards.-The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down procedures, formats and standards for furnishing and verifying the declaration in Form-1 under sub-rule (1) of rule 3, furnishing and verifying the undertaking in Form-2 under sub-rule (2) of rule 3, granting of certificate in Form-3 under rule 4, intimation of payment and proof of withdrawal in Form-4 under rule 5 and issuance of order in Form-Sunder rule 7 and the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the said declaration, undertaking, certificate, intimation and order.

9. Manner of computing disputed tax in caws where loss or unabsorbed depredation is reduced.-(1) Where the dispute in relation to an ciwdtbilient year relates to reduction in loss or unabsorbed depredation to be carried forward under the Income-tax Act, the declarant shall have an option to

(i) include the tax, including surcharge and cess, payable on the amount by which loss or unabsorbed depredation is reduced in the disputed tax and carry forward the loss or unabsorbed depredation by ignoring such amount of reduction in loss or unabsorbed depreciation; or

(ii) carry forward the reduced amount of loss or unabsorbed depreciation.

(2) Where the declarant exercises the option as per dause (ii) of sub-rule (1), he shall be I i able to pay tax, including surcharge and cess, along with interest, if any, as a consequence of carrying forward the reduced amount of loss or unabsorbed depreciation in subsequent years:

Provided that the written down value of the block of asset on the last day of the year, in respect of which unabsorbed depredation has been reduced, shall not be increased by the amount of reduction in unabsorbed depredation:

Provided further that in cases other than the eligible search cases, in computing the reduced amount of loss or unabsorbed depreciation to be carried forward in dause (ii) of sub-rule (1), one-half of the amount by which loss or unabsorbed depreciation is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of declarant:

Provided also that in case of eligible search cases, in computing the reduced amount of loss or unabsorbed depredation to be carried forward in clause (ii) of sub-rule (1), one and one-fourth times of the amount by which loss or unabsorbed depreciation is reduced shall be considered for reduction and where the one and one-fourth times of the amount by which loss or unabsorbed depreciation is reduced exceeds the amount of loss to be carried forward before it’s reduction, such excess shall be ignored:

Provided also that in case of eligible search cases in computing the reduced amount of loss or unabsorbed depredation to be carried forward in clause (ii) of sub-rule (1), five-eighth of the amount by which loss or unabsorbed depreciation is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of declarant.

10. Manner of computing disputed tax in casaswhere M inimum Alternate Tax (M AT) credit is reduced.-(1) Where the dispute in relation to an assessment year relates to reduction in Minimum Alternate Tax (MAT) credit to be carried forward, the declarant shall have an option to

(i) include the amount by which MAT credit to be carried forward is reduced in disputed tax and carry forward the MAT credit by ignoring such amount of reduction, or

(ii) carry forward the reduced MAT credit.

(2) Where the declarant exercises the option as per dause (i i) of sub-rule (1), he shall be I i abl e to pay tax, including surcharge and cess, along with interest, if any, as a consequence of carrying forward reduced MAT credit in subsequent years:

Provided that in cases other than the eligible search cases, in computing the reduced amount of MAT credit to be carried forward in clause (ii) of sub-rule (1), one-half of the amount by which MAT credit is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of declarant:

Provided further that in case of eligible search cases, in computing the reduced amount of MAT credit to be carried forward in clause (ii) of sub-rule (1), one and one-fourth times of the amount by which MAT credit is reduced shall be considered for reduction and where the one and one-fourth times the amount by which MAT credit is reduced exceeds the amount of MAT credit to be carried forward before it’s reduction, such excess shall be ignored:

Provided also that in case of eligible search cases in computing the reduced amount of MAT credit to be called forward in clause (ii) of sub-rule (1), five-eighth of the amount by which MAT credit is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of dedarant.

Explanation – For the purpose of this rule MAT credit means tax credit as per the provisions of section 115JAA or 115JD of the Income-tax Act.

11. Manner of computing disputed tax in certain cams– (1) Where the dispute includes issues covered in favour of declarant, the disputed tax in respect of such issues shall be the amount, which bears to tax, including surcharge and cess, payable on all the issues in dispute, the same proportion as the disputed income in relation to issues covered in favour of declarant bear to the disputed income in relation to all the issues in dispute.

FORM-1

(see rule 3)

Form for filing declaration

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Form-2

[See rule 3(2)]

UNDERTAKING UNDER SUB-SECTION (5) OF SECTION 4 OF THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020 (3 of 2020)

THE DIRECT TAX VIVAD SE VISHWAS RULES, 2020

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Form-3

[See rule 4]

FORM FOR CERTIFICATE UNDER SUB-SECTION (1) OF SECTION 5 OF THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020 (3 of 2020)

THE DIRECT TAX VIVAD SE VISHWAS RULES, 2020

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Form-4

[See rule 5]

INTIMATION OF PAYMENT UNDER SUB-SECTION (2) OF SECTION 5OF THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020 (3 of 2020)

THE DIRECT TAX VIVAD SE VISHWAS RULES, 2020

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Form-5

[See rule 7]

ORDER FOR FULL AND FINAL SETTLEMENT OF TAX ARREAR UNDER SECTION 5 (2) READ WITH SECTION 6OF THE DIRECT TAXVIVAD SE VISHWAS ACT, 2020 (3 of 2020)

THE DIRECT TAX VIVAD SE VISHWAS RULES, 2020

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[Notification No.18/2020, F. No. IT(A)/1/2020-TPL]
ANKUR GOYAL, Under Secy.


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