Answers to queries on Vivad Se Vishwas Scheme

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We have requested a panel of experts to assist taxpayers and professionals on questions relating to the Vivad Se Vishwas Scheme. The panel comprises of Dr. K. Shivaram, Senior Advocate, CA Rajan Vora and CA Pradeep Kapasi. If you have a query, please use the form to ask it. We will request the panel to provide an answer as soon as possible.
See also Vivad Se Vishwas Scheme: The Law, Procedure And Dilemma where a link to all necessary resources is given

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The answers given below are in response to queries asked by other people.
Query

We received form 3 from IT department intimating refund. The form 4 was also filed duly. The status as shown in the IT portal is “Awaiting Signed Form 5 from CIT”. In between we have received hearing notice for the appeal u/s 250. How is this possible?

Answer (read more)
Query

I want to know in which head i have to pay the tax and in which provision (i.e basic,int,fee)

Thankyou

Answer : It will be regular assessment tax challan , with minor head 400 . Write properly the PAN  NO and Assessment year . There is no separate Challan  has been prescribed .   (read more)
Query

I have received Form 5 on account of settling disputed tax under VSV scheme in Feb 2021. I have received IT Orders and Notices seeking penalty for the same disputed tax. Please advice as to how do I seek a complete solution to this issue

Answer The assessee  is advised to make an  rectification application  for cancellation of the penalty lived  .The assessee may enclose the  details of payment made as per VSV Scheme. In case the rectification is not done with in the limitation period of filing an appeal before the CIT (A) the assessee is advised to  file an… (read more)
Query

What if the payment to be made under the Scheme after the receipt of Form 3 is not paid within the due date given for payment along with additional amount(i.e Oct 31st 2021)
Will the appeal already filed hold good or will the appeal be treated as withdrawn and revert back to assessment proceedings

Answer Appeal will hold good only the immunity under VSV Scheme is not available to the assessee.  Please refer Circular No 9/2020   dt.22-4 -2020 ,    Q. 49 . Once declaration is filed under Vivad Se Vishwas and for financial difficulties ,payment is not made accordingly , will the declaration be null and void ? Answer: Yes… (read more)
Query

Amount Payable under Form-1 filed by me was Rs. 1,89,846 and Rs. 2,08,831 (10% extra option). Department issued Form-3 and amount payable was Rs.2,37,811 and Rs. 2,56,794 (10% extra).

Later on they corrected suo moto due to clarification regarding 125% applicability and Amount payable was shown as Rs. 1,90,350 and Rs. 2,09,385 (10% extra).

Due to error on the Income Tax Portal we were not able to download Form-3 till 30/09/2021. We had spoken several time with the helpline numbers. At last it was downloaded on 7th October,2021.

My client had paid Rs. 1,89,846 before 30th September,2021 as per Form-1. Form-3 came later on.

Now my query is how much additional amount my client will have to pay :

1) Rs. 504 (Difference of Form-1 and Form-3) OR

2) Rs.554 (Difference of Form-1 and Form-3 – Rs. 504 plus Rs. 50 (10% extra) OR

3) Rs. 19539 (Difference of Rs. 209385 (Total Additional Amount as per Form-3) – Rs. 189846 (Amount Paid)

Please guide. This situation has arisen due to Departmental Portal issue without any fault of the Client

Answer The tax has to be  paid as per the provisions of the Act . The tax consultant may be able to guide on verification of records . The assessee may write to the Designated Authority and  Chairman CBDT. The     Assessee may also send the copy of letter addressed to the Designated Authority  to grievance cell… (read more)
Query

What is the time limitation for issue of refund by the department determined in Form 5 of VSV? If the refund is not received within the said time limit then whether the assessee is entitled for interest on the delayed period and what is the procedure. pl. guide

Answer There is neither  time prescribed under the Act nor interest is payable to  the assessee.  The assessee may make an request in writing  to the Designated Authority  to grant the refund with interest at the earliest . If no response is received   within reasonable time  the assessee may file writ before the High Court. High… (read more)
Query

The AO adjusted tax payable under Vivad Se Vishwas (VSV) Scheme while passing rectification order u/s 154 for correction of mistakes in the assessment order and calculated refund. This rectification order was passed after assessee filed Form 1 and 2 of VSV Scheme.

The DA has now issued Form 3 showing ‘0’ amount in Tax payable arrear and Amount payable under DTVSV.

Since department has already recovered tax payable in DTVSV in rectification order passed u/s 154, should the assessee file a rectification of Form 3 so that the tax paid in VSV is correctly shown in Form 3 and Form 5.

Answer Please refer circular No 21/2020 dt 4 -12 -2020 .    Q. No 89  Q.  Once declaration is filed by assessee u/s 4 of the Vivad Se Vishwas can the same be revised ? If yes , at what stage of the proceedings will the same be allowed  ?   Answer : Yes ,  declaration can be… (read more)
Query

Sir,

The option to file Form 4 under DTVSV has disappeared from the IT portal. Help line person told that it has been removed as due date to file the Form 4 is over on 30/09/2021.

Is it true? What can be done now. As I’ve received from 3 and have paid tax also.

Earlier I could not file the form as it did not move once appeal withdrawal letter was attached.

Please guide me.

Thank you,

Answer Please send the form No 4  by registered post to the Designated Authority . Assessee  may also write to Chairman CBDT .    Assessee may also send the copy of letter addressed to the Designated Authority  to grievance cell of  assessee’s jurisdiction .   The Grievance Cell has to action with in 21 days  of receipt of… (read more)
Query

sir
we have submitted , after completing all the requirements of the form 4.

But it is showing us the pin code not matching. we have tried so many times but unable to upload this document only because of this error.

please kindly help us by giving us proper instructions to move forward in this aspect .
thank you
suresh

Answer : Please send the form No 4  by registered post to the Designated Authority . Assessee  may also write to Chairman CBDT .    Assessee may also send the copy of letter addressed to the Designated Authority  to grievance cell of  assessee’s jurisdiction .   The Grievance Cell has to action with in 21 days  of receipt… (read more)
Query

Form 5 received. CIT(A)- NFAC has also dismissed the appeal due to Form 5. But the AO has not received the copy of order dismissing the appeal from NFAC and he is not accepting the copy available on e-proceeding tab of the Assessee. So, AO is denying the remove the demand from portal. What to do.

Answer The assessee may  write to the Assessing Officer  as well as Designated Authority  and the CBDT.   The Assessee  may also  write to Grievance  Cell of the Income   Tax department  . The Grievance Cell has to action with in 21 days  of receipt of the petition .  The Procedure  for Grievance Redressal is published in the… (read more)