Answers to queries on Vivad Se Vishwas Scheme

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The Union Honourable Finance Minister, Mrs Nirmala Sitharaman during her budget speech on February 1, 2020 (2020) 420 ITR 115 (St) (146) proposed to introduce a scheme at para 126 of the speech for settlement of disputes. Subsequently, the Direct Tax Vivad Se Vishwas Act, 2020 (VSV Act) was introduced. The Scheme was extended from time to time and the last date for payment under the VSV Act, 2020 extended until October 31, 2021 by CBDT, vide Notification No. 75 of 2021 dated June 25, 2021 (2021) 435 ITR (St) 25. The said scheme has benefited the taxpayers to reduce the tax litigation. When the scheme was introduced the research team of the itatonline.org had anticipated that the taxpayers may require a number of clarifications. Itatonline.org had requested the panel of experts consisting of Dr. K. Shivaram Senior Advocate, CA Rajan Vora and CA Pradeep Kapasi to answer queries arising on Vivad Se Viswas Schme to assist the tax consultants and tax payers. The expert panel started answering the queries raised by the tax consultants on February 28, 2020 and till date the expert panel have answered more than 750 questions only on the Direct Tax Vivad Se Viswas Act, 2020. From May 15, 2021 on words the itatonline.org has introduced the new section on “Ask your questions” which answers questions regularly. It is proposed that this new panel will answer the questions pertaining to Direct Tax Vivad Se Viswas Act, 2020.
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

in what type of challan i have to pay the tax
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

Hi sir,

Could you please advise that is there any timeline to issue redund amount mentioned on form 5. How soon i can get refund post receiving form 5.

Regards,
Answer There is no time limit is prescribed however the assessee should get with in reasonable time . The assessee may write to the Designated Authority to   grant the refund with in fifteen days . If no response is received the assessee may write to the Chairman CBDT . Finally if no response is received the  … (read more)
Query

I HAVE SUBMITTED FORM 1 AND 2 WITH CORRECT DETAILS OF TAX ARREAR AND AMOUNT PAYBLE UNDER VIVAD SE VISWAS. BUT IN THE FORM 3 ISSUED BY DEPARTMENT INCORRECT FIGURES OF TAX ARREA AND TAX AMOUNT IS determined. TAX ARREAR IS LOWER THAN WHAT WAS SHOWN BY US AND TAX payable IS INCREASED BY INCLUDING THE SELF ASSESSMENT TAX WHICH HAS ALREADY BEEN PAID. HOW TO GET IT CORRECTED.
Answer The assesee may submit the rectification application before Designated Authority .  The Designated Authority has power to rectify the form .3.  The assessee may approach the Designated Authority .    (read more)
Query

The assessee filed the application under VSV Scheme now the application status shown as rejected. Who can reject VSV Scheme application? Where to submit the VSV Scheme review petition?
Answer There is no provision for review . if the rejection is arbitrary or not following the due process of law , the assessee can file Writ before High Court .   (read more)
Query

How long does it take to department to issue form 5 of vsv
Answer The assessee may write to the Designated Authority . In case no reply is received the assessee may write to the Chairman CBDT .We hope the assessee may receive the Form 5 on or before 15th  May 2021 .  (read more)
Query

Sir,
I have paid the taxes determined under Vivad Se Viswas Scheme in terms of Form 3 issued on 15th March 2021 and submitted Form 4 on the same date for which acknowledgement has been generated. Now when I logged in to my account at the portal, it is still showing as “Submit Form 4”, whereas the same is submitted more than one month ago.
Where shall I write or contact for correction / updating the form 4 submission. Regards,

Answer Please write to the Designated Authority .If no response is received the assessee may write to the Chairman CBDT . We hope the Designated Authority will be able to do the needful at the earliest .   (read more)
Query

I have paid the settlement tax under VSVS and provided details along with VSVS Form 4. My final order (Form 5) is pending.
However my tax refund has adjusted against my outstanding tax (before VSVS).
Please guide me how can I get my adjusted tax (refund) as it is additionally taken by IT department.

Answer . Please write to the Designated Authority for granting the refund due to you  and pass the rectification order.   The Designated Authority has power to rectify the form .3.  .If you does not get any response from the Designated Authority , within reasonable time ,you may  write to the Chairman CBDT  Shri Pramod Chandra Mody … (read more)
Query

I have filed form 1 & 2, in Month of December 2020, but till now form 3 hasn’t been issued. I beginning of this month have approached PCIT to enquire reasons for same. He just noted down the PAN number and asked me to leave immediately stating that he is very busy and he will issue form 3. But till now he hasn’t issued form 3 and nor communicating anything why has he kept it on hold.

So , kindly suggest what action to be taken from my end and is there anyone with whom i could complaint of same.
And so also let me know whether form 3 can be issued after 30/04/2021 also.
Answer Please write to the Designated Authority . If the assessee  does not get any response within reasonable time  from the Designated Authority , you may you may  write to the Chairman CBDT  Shri Pramod Chandra Mody  e mail is , chairmanabcbdt@nic.in   .   In case if you does  not get any response from the  Chairman CBDT… (read more)
Query

I HAVE PAID SETTLEMENT TAX IN ASSESSMENT YEAR 2020-2021 FOR DTVSV INSTEAD OF A.Y. 2011-2012.

ARE THIS OK OR NOT????
Answer It is fine , provided assessment year is correctly mentioned in the challan . (read more)
Query

Scrutiny assessment was completed u/s 143(3) based on information from Inv wing (Penny STock case). The Form3 has been received calculating Tax under VSV @ 125%. Does the Circular issued on 23rd mar clarify the FAQ 70 for levying 100/125% tax. The designated CIT is of the view that even after the circular 125% should be levied. WHats the latest update on this matter.
Thanks in anticipation.
Answer CBDT issued Circular No. 04 /2021  dt 23 rd March 2021 they have clarified that , answer given in Q. No .70 is applicable to Search cases only . The assessee need not pay 125% . The CBDT has modified their earlier answer . The Assessee may write to the Designated Authority to send revised… (read more)