The Central Government has proposed an amnesty scheme for direct taxes in India. The Finance Minister has proposed the Direct Tax Vivad Se Vishwas Bill, 2020 to reduce the pendency of appeals before the Authorities which as at 30th November, 2019 amounts to Rs. 9.32 lakh crores (equivalent to almost an year of direct tax collections). Further, it will help in early realization of disputed tax amount by the Government and save time, energy and resources of both taxpayers and the Government. The scheme proposed under the Bill is:

S.No. Nature of Tax Arrear Amount payable within 31/03/2020 Amount payable between 01/04/2020 to 30/06/2020
1. Total disputed tax and interest / penalty thereon
  • Only disputed tax amount.
  • Waiver of interest and penalty.
  • 110% of disputed tax amount[1]
  • Waiver of interest and penalty.
2. Dispute is only with regard to interest / penalty / fees 25% of interest / penalty / fees 30% of interest / penalty / fees


  • Cases pending as at 31st January, 2020 before

a. Commissioner of Income Tax (Appeals)

b. Income Tax Appellate Tribunal

c. High Court of India

d. Supreme Court of India


  • Where assessment is made under search and seizure proceedings
  • Where prosecution has been initiated under Income tax Act or other Acts
  • Where there is undisclosed foreign income or asset
  • Where case is initiated as per information exchange from other countries
  • Where notice for enhancement of tax dues is issued by Commissioner (Appeals)


  • The appellant will file a declaration to the designated authority in the notified form electronically. The designated authority within 15 days of receipt of declaration shall determine the amount payable by the appellant and may grant a certificate to the appellant stating the particulars of tax arrears and the amount payable.
  • Within 15 days of the receipt of the certificate, the appellant shall pay the amount as stated in the certificate and intimate the same to the designated authority.
  • The designated authority will pass the order and all disputed tax, interest, penalty and fees shall be deemed to be withdrawn from the date of the certificate.


  • No matter covered under order passed by designated authority may be reopened under any laws for the time being in force.
  • The designated authority shall not institute any new offences under Income Tax Act, 1961.

[1] If disputed tax arrears together with interest and penalty does not exceed 110% of disputed tax, then amount to the extent of disputed tax arrears along with interest and penalty shall be paid.

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February 2021