Respected PM Sir and FM madam,

I append below a write up for benefit of revenue by increasing scope  and  properly managing ‘Direct Tax Vivad Se Viswas Act,   by accepting  amount under declaration to settle all lost  disputes of revenue- whether challenged by revenue or not and by accepting payment in advance with some early bird concession.

There is need to

a) Extend Last Date To File Declaration

(b) Allow In All Cases On Issues Lost By Department Irrespective Of Appealed Or Not By Department

(c) Made Easy Documentation

(d) Concession For Early Payment

I hope for a serious consideration for benefit of revenue.


Dev Kumar Kothari



Direct Tax Vivad Se Viswas (VSV) – Need To

a) Extend Last Date To File Declaration

(b) Allow In All Cases On Issues Lost By Department Irrespective Of Appealed Or Not By Department

(c) Made Easy Documentation

(d) Concession For Early Payment                                                                          

Vivad Se Viswas (VSV) – Complex Provisions:

Provisions of VSV Act and Rules are highly complex and confusing. This is evident that in spite of various clarifications by way of circulars containing large number of Frequently Asked Questions (FAQ) answered by the CBDT, there still remains many doubts.

The computation provision for ascertaining amount payable under a declaration is also complex and confusing and there can be more than one computation leading to different figures by tax payer and tax department.

Extension of time is desirable for the following reasons:

COVID problems- Problems due to COVID and partial working of tax payers and tax officers.

Complexity problems – Complex provisions which still need more clarification. Even after circular of 4th December, 2012 there are many issues which are not yet understandable beyond doubt.

Available time: Tax and accounting professionals have many work to complete for accounting ,  audits, attestations,  filing of returns , MCA, GST work etc. Back log is caused due to lock down and partial working. Therefore, available time is short.


1. Difficulties in obtaining and filing of evidence for withdrawal of appeal by tax payer. In fact this is not necessary because the law provide for deemed withdrawal.  Therefore this condition can be waived.

2. Difficulties in case of issues lost by department, in appeal, because assessee cannot easily know last date for filing of appeal by tax department, whether department has filed/ intend to file appeal.

3. Computation by tax payer and tax department. For easy disposal concerned tax officers can provide amount of tax payable under scheme on issues to be settled by tax payer.


Tax payers appeal:

The requirement of evidence of withdrawal of appeal can be waived because the appeal, on settlement shall stand withdrawn. Even otherwise, a communication by email or physical intimation, from appellant to the appellate authority / court about filing of declaration   and withdrawal of appeal on issue of final certificate on settlement can be considered sufficient and there should not be insistence for furnishing any other evidence in this regard.

Departments lost cases – declaration and settlement should be allowed in all cases:

In case in any matter department has lost, and department may or may not file appeal. It is difficult for tax payer to ascertain about intended appeal and even appeal already filed, because notices of appeal are served late.

In such case where tax payer has won but want to settle dispute  ( including likely dispute) by department,  for peace of mind and certainty, the tax payer should be allowed to settle the same on payment of 50% of disputed tax ( including likely disputed by department).

Therefore, condition of pendency of appeal or deemed appeal (when time to file appeal is available to department) should be waived.

Taxpayer should be allowed to pay 50% of tax on disputed / likely disputed issues by department and file declaration without any evidence about appeal or likely appeal by department/ revenue.

Concession for early payment – early bird discount:

As per position now, a declarant can deposit amount payable on declaration by 31st March 2021 without any extra cost.  To expedite recovery within FY 2020-21, scheme for concession for early payment can be announced.

Many taxpayers filed declaration earlier, but due to COVID certificates have not been issued or issued belatedly by the Designated Authority (DA). In many cases declarations are to be filed and certificate are to be issued by DA.  In all declaration filed cases certificate must be issued as soon as possible and declarants can be allowed a discount or concession for early payment.

A discount at certain rate say 0.75% or 1% per month can be allowed for each day of early payment of tax under declaration. Therefore suppose a person pays tax on declaration on 1st January 2021 he can be allowed concession for 90 days.

Advance payment, on estimated basis by tax payer, with concession can also be accepted with facility of discount.

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January 2021