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

I have filed Form 1 & 2 under VSV scheme on 9.03.2020, and 15 days time for receiving Form 3 is expiring today i.e 24.03.2020. The status shows as – awaiting Form 3. Kindly suggest

Answer The assessee will get the Form No 3 and thereafter the payment is to be made  . The earlier notification dated 27 -10 -2010 has been amended  by vide Notification No. 09/2021/ F.No. IT(A)/01/2020-TPL dated 26th February, 2021 by CBDT, the time limit for payment without additional amount is extended to 30 th April 2021… (read more)
Query

Sir i have done the payment of taxes and filled the form 4
what is the procedure after this and what is the time period i will get certificate from the authorities

Answer The assessee will get the certificate  under section 5(1) of the Vivad Se Vishwas Act in due course of time .   (read more)
Query

I have a pending demand for AY 2010-11.For appeal i paid 20% of the demand amount and also furnished IT return of the mentioned year.Later I opted for VSVS scheme.Form-3 is generated where they have considered only 20% of paid fees and not the TAX paid during the period.Rest penalty amount to be paid.I need to adjust the tax amount already paid for that year,but there is no provision given for rectification. Kindly suggest.

Answer Please refer Circular No 21 /2020 dt 4-12 ,2020 , as per Q.No 89  Ans ,it has been stated that the declaration  can be revised any number of times before DA issues  a certificate under section 5(1) of the Vivad Se Vishawas. .  It may be desirable to file revised declaration .  Please refer Circular… (read more)
Query

Respected Sir,

Applied for VSV scheme, received form 3. Made the required payment.

Submitted form 4 with the necessary attachments. Received message submission received. But status still shows submit form 4.

Approached designated authority and submitted the same. From last 3 month I am awaiting for form 5. Authorities keep promising will receive in few days… but 3 months have passed.

Request your help and guidance in this matter

Answer The assessee need not worry . The delay is on the part of the Tax administration. The revenue may expeditious of the process of issuing form 5  after 31 st March  2021 . We hope the assessee will receive Form before end of the April , 2021        (read more)
Query

I have submitted the Form 4 along with attachment and duly signed by DSC. and i have received mailed stating Form 4 filed successfully

But still the status bar under action shows Submit Form 4

What is the reason? do i have to submit the Form 4 again

Answer It may be desirable to submit once again or the assessee may contact the Designated Authority . (read more)
Query

I have filed form No.1 & 2 under VSV and received form no.3 with 125% of normal tax being treated my case as search case in terms of FAQ 70, now if I don’t pay tax and opt not to file form 4, what will be repercussions.. and what will be effect of amount paid before opting for the scheme i.e. 20% payment made at first appellate stage to get stay on demand.. will it be considered as amount paid under VSV and will not be adjusted against final demand, if any on disposal of appeal.

Answer To day 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… (read more)
Query

Sir,

Assesment for a/y 2011-12 was made u/s 143(3) w.r.s. 147 and the tax arrears were computed. in these arrears the amount of Tax was 269289 and interest u/s 234a, b, c and d were added. I have filed appeal with the CIT appeals which is pending. In the Vivad se Vishwas cheme, I have applied and my liability for the amount of Tax 269289 but the department has issued form-3 in which they have added interest u/s 234D also and have calculated amount payable at Rs 393980 (269289 + 124691 intt 234D)
I have read the act and I seek clarification – whether interest u/s 234d is to be added to the disputed tax and amount payable under the scheme would be disputed tax + interest u/s 234d ??

Answer Please refer S. 234D (2) which reads  that where as a result of an order u/s 154  or 155 or 250 or 254 or 260 or  262  or 263 or 264 etc is passed the amount of refund granted under Sub section 143(1) is held to be correctly allowed , either in whole or in… (read more)
Query

Sir Submitted Form IV attached with Challan for paid tax. Since then almost 2 months are over. The Form V has not been issued so far. What I should do? Please guide

Answer The Assessee may receive in due course of time . The delay is normal . The assessee may write to the Designated Authority .   (read more)
Query

Received Form No 3 under DTVSV from designated authority with NIL liability since all disputed tax paid while filing Form 1 and 2. Appeal is also withdrawn which was pending before CIT(A) immediately after receipt of Form No 3 by writing letter to CIT(A. Question is while filing Form No.4 there is one field wherein it is asked whether appeal, objection, application, writ petition, arbitration,conciliation, mediation or claim has been filed ? what answer to be given here.

Answer The asssesseee has to write appeal was filed before the CIT (A)on , which was withdrawn on ----- . Encloses the withdrawal letter filed or if order received from the CIT (A)   (read more)
Query

I have filed declaration under Vivad SeVishwas Scheme and Form No.5 has already been issued by the designated authority as per which refund is due to me. But about 3-4 months have elapsed but refund due has not been received. Please guide me how I can get my refund. Thanks.

Answer The assessee may have to write to the Assessing Officer concerned to issue the refund order . In case no response is received can write to the PCIT . In case the refund is substantial it may be desirable to file Writ before High Court (read more)