EY Flash News CBDT further extends timeline for completion of proceedings under Income Tax Laws and payment of amount determined under DTVSV, 2020
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26 April 2021
EY Flash News
CBDT further extends timeline
for completion of proceedings
under Income Tax Laws and
payment of amount determined
under DTVSV, 2020
Tax Alerts cover significant Executive summary
tax news, developments and
changes in legislation that This Flash News summarizes a Press Release issued by the Central Board of Direct
affect Indian businesses. They Taxes (CBDT)1 on 24 April 2021 (Press Release) further extending due dates for
specified compliances by the tax authority and the taxpayer. In the wake of significant
act as technical summaries to hardship being faced by taxpayers because of the ongoing COVID-19 pandemic, the
keep you on top of the latest tax CBDT has declared further extension in the time limit from 30 April 2021 to 30 June
2021 for passing of assessment/reassessment order, passing of final assessment order
issues. For more information, pursuant to directions issued by the Dispute Resolution Panel (DRP) and issuance of
please contact your EY advisor. notice for reopening of assessment, all of which were falling due between 20 March
2020 to 31 March 2021. Likewise, the CBDT also declared extension till 30 June 2021
for sending intimation of processing of statements filed by taxpayers under
equalisation levy (which were falling due between 20 March 2020 to 31 March 2021).
Furthermore, the sunset date for payment of the amount determined under the Direct
Tax Vivad Se Vishwas Act, 2020 (DTVSV) (without any additional amount) has also
been extended to 30 June 2021.
1
Apex body of direct tax administration in IndiaBackground
► The central government had promulgated The
Taxation and Other Laws (Relaxation of Certain
Provisions) Act, 2020 (Ordinance)2 which
provided that any compliance due on the part
of taxpayers or the tax authority under the
Income Tax Laws (ITL), which was falling due
between 20 March 2020 to 31 December 2020
(hereinafter referred to as Disruption Period),
can be complied with on or before 31 March
2021. The Disruption Period was extended till
30 March 2021 vide Notification No. 93/2020
dated 31 December 20203.
► Acknowledging the hardship being faced by
taxpayers because of the ongoing COVID-19
pandemic, the CBDT had issued Notification No.
10/2021 dated 27 February 20214 (February
Notification) and Notification No. 20/2021 and
Press Release dated 31 March 20215 (March
Notification) providing for extension In various
time limits6 under the ITL.
► DTVSV was introduced as a part of Union
Budget 2020 to provide an opportunity for
taxpayers to settle their direct tax disputes
pending as on 31 January 2020 by filing a
declaration in the prescribed form with the
Designated Authority (DA) and by paying the
prescribed amount before the due date. The
sunset date for payment of 100% of disputed
tax (without an additional amount) was
extended from 31 March 2021 to 30 April
2021, vide Notification No. 9/2021 dated 26
February 2021.7
► In the wake of the continuing pandemic, the
CBDT has issued the Press Release providing
for extension in time limit till 30 June 2021 for
passing assessment/reassessment orders,
orders to be passed in consequence of
directions of the DRP etc., as well as the time
limit for payment of the amount payable under
DTVSV.
2
Refer our Tax Alerts, “COVID 19 Impact - recently for various compliance under Income Tax Laws and VSV Act, 2020” dated 01 January
Government extends various timelines up to 2021
4
30 June 2020 and provides relaxations under Refer our Tax Alert, “CBDT further extends timeline for completion of proceedings under Income
various direct tax laws in India” dated 1 April Tax Laws and Benami Property Law” dated 1 March 2021
5
2020 and “Central Government introduces Bill Refer our Tax Alert, “CBDT grants further extension for linking Aadhaar with PAN by taxpayers
to codify COVID-19 reliefs, faceless and issuance of reopening notices, passing of final assessment orders etc. by tax authority” dated
proceedings and supplement some Finance Act 5 April 2021
6
2020 amendments” dated 19 September Passing of assessment/reassessment orders, issuance of notice for reopening assessment,
2020 processing of statement filed under equalisation levy by the taxpayers etc.
3 7
Refer our Tax Alert, “CBDT issues Refer our Flash News, “CBDT further extends sunset date for filing declaration under “The Direct
notifications to formalize extensions granted Tax – Vivad Se Vishwas Act, 2020” and making payment of disputed tax” dated 28 February 2021Press Release
► The CBDT has granted further extension to the tax authority in relation to specific compliances under the ITL
as follows:
Compliance Erstwhile Erstwhile Extended Extended Further
pertaining to disruption compliance disruption compliance extended
period date period date compliance
date as per
Press
Release
Passing of 20 March 31 March No change 30 April 2021 30 June 2021
assessment/ 2020 to 30 2021
reassessment March 2021
orders under ITL
Passing of final 20 March 31 March 20 March 30 April 2021 30 June 2021
assessment order 2020 to 30 2021 2020 to 31
pursuant to March 2021 March 2021
directions issued
by DRP
Issuance of notice 20 March 31 March 20 March 30 April 2021 30 June 2021
for reopening of 2020 to 30 2021 2020 to 31
assessment March 2021 March 2021
Sending 20 March 31 March 20 March 30 April 2021 30 June 2021
intimation of 2020 to 30 2021 2020 to 31
processing of March 2021 March 2021
statements filed
by taxpayers
under equalisation
levy► In addition to the above, in the following cases, the timeline for completion of proceedings under the ITL
were already extended earlier by the February and March Notifications, which remain unaffected by the
present Press Release:
Compliance Erstwhile Erstwhile Extended Extended
pertaining to disruption compliance date disruption compliance date
period period
Passing of penalty 20 March 2020 31 March 2021 20 March 2020 30 June 2021
order under Chapter to 30 March to 29 June
XXI of ITL 2021 2021
Passing of Not covered in 31 March 2021 Not Applicable 30 September
assessment/ disruption period 2021
reassessment orders above but is due
under ITL on 31 March
2021
Issuance of notice 20 March 2020 31 March 2021 20 March 2020 30 September
and passing of order to 30 March to 30 June 2021
under Benami Law 2021 2021
► The Press Release has granted further extension till 30 June 2021 for payment of the amount determined
under DTVSV (without any additional amount).Our offices
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