Answers to queries on Vivad Se Vishwas Scheme

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
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

This section is now closed. Please ask your questions at our new Q&A section
The answers given below are in response to queries asked by other people.
Query

An appeal is pending before the CIT(A). However at the time of appeal the demand was at Rs. 60,00,000/-. After 10 days a rectification Order u/s 154 was passed wherein the TDS Credit of Rs. 15,00,000/- was allowed. So my question is whether in filing of Form 1 the disputed tax will be Rs. 60,00,000/- or Rs. 45,00,000/-. If 60,00,000/- then how we will show the payment of Rs. 15,00,000/- (TDS) in the column of taxes paid. If Rs. 45,00,000/- whether my application will be rejected. Thanking You.
Answer Please refer  circular No.9  dt. 22-4 -2020   Q .No. 50 and answer given by the CBDT , in case the demand has been reduced partly or fully   ,the demand payable will be adjusted .  The Application will not be rejected . In the form TDS deducted will have to be reduced and balance amount will… (read more)
Query

DEPARTMENT ISSUED FORM 3 INCORRECTLY.
AS PER FORM 1 ASSESSEE GOT REFUND BUT DEPT SAY ASSESSEE GOT NO REFUND.
NOW RECTIFICATION LETTER IS PREOARED BY ASSESSEE.
BUT NOW DONT UNDERSTAND TO WHOM THAT LETTER IS GIVEN ?
CAN YOU KINDLY HELP ME TO WHOM THE RECTIFICATION LETTER SEND?
Answer The  assessee may write to the Designated Authority . It may be  desirable  verify the details of refund form the  Portal of the assessee. In case the portal does not show the refund due to the assessee  in such a situation the assessee may have to file a  rectification application before the Assessing officer  to… (read more)
Query

Q1 TIME LIMIT OF FORM 4 AND PAYMENT OF TAX DUE?
Answer Since 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 . the abovementioned notification, even earlier forms issued will also be covered and payments made upto… (read more)
Query

SIR WE HAVE RECEIVED FORM 3 FROM DEPARTMENT INFORMING THE AMOUNT PAYABALE BEFORE AND AFTER 31.03.2021
CAN WE PAY AFTER 31.03.2021 WITHOUT ADDITIONAL FEES BEFORE 30.04.2021
Answer Yes .  Since 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 . the abovementioned notification, even earlier forms issued will also be covered and payments… (read more)
Query

We have filed a case under DTVSV and we received Form 3? What is the next step to be followed? Should we pay tax as per Form 4 attached? Should we do something more? Please guide.
Answer  It is desirable to pay the tax and get the certificate which will be issued by the Designated Authority . (read more)
Query

addition is made vide section 115JB if tax is paid under VSVS will the increased MAT be allowed to be carried forward
Income is not disturbed as per normal income
Answer Please refer Circular no. 9 dt 22-4 -2020   Q. No. 53 and answer given by the CBDT, it has been clarified that  CBDT will prescribe the  manner of  calculation in such cases . It seems the CBDT has not prescribed , however by reading Rule 9 &10 together and as there is no express bar… (read more)
Query

Whether Sec 263 can be initiated against the assessee in respect of matter decided under Vivad Se Vishwas Scheme
Answer Please refer Section 5 (3) of the  Direct  Tax Vivad Se Vishwas Act , 2020, every order passed under  sub section 5(1) , determining the amount payable under this Act  shall be conclusive as to the matter stated therein and no matter covered by such order reopened in any proceedings under the Income -tax  Act… (read more)
Query

Thanks a lot for answering my earlier questions. Sorry to trouble again. My query is what is the due date [time limit] for filing Form 4 in cases where no tax is payable under VSVS [refund due to tax already paid before declaration / nil due to set off of brought forward unabsorbed losses or depreciation].

The appeal is pending before Madras High Court and already filed Memo for withdrawal one month back [no acknowledgement – as per procedure followed in Madras High Court], but the case is not yet listed. Since withdrawal of case is mandatory, unless the case is posted, may not be able to obtain order for withdrawal.

Kindly clarify / suggest the options available.

Thanking you in advance.
Answer The assssessee may have an application before the High Court to  fix the matter out of turn hearing . In Mumbai the Honourable High Court  fixes the matter for withdrawal as soon as the application is made. Most of the  High Courts  follow the same procedure . You may request the Advocate on  record to… (read more)
Query

What to select in Form-4, where it is asking that whether any appeal, objections, applications, writ petition, special leave petition etc has been filed?? (Please select NA if not filed).

Facts: We have filed appeal to ITAT against the order of CIT(A) and that has not been withdrawn.
Answer The assssessee has to refer the date of filing an appeal before the ITAT . if the appeal no is allotted the assessee can mention the N0 or may attach the acknowledgement for filing an appeal before the ITAT .    (read more)
Query

I have made application under Vivad se Vishwas on 30.12.2020 but after receiving form 3, appellate order is passed and the order is in the favour of appellant. Appellant wants to withdraw application under Vivad se Vishwas but in his e-filing account there is no such option. Please suggest what should be done in this case.
Answer The asssessee may write to the Designated Authority.   The asssessee  can opt out, however if taxes paid  under the Vsv Act,  the assessee will not get the  refund.    Please refer  circular No . 9 /2020 dt 22-4 -2020--Q, No . 42 and answer   given by the CBDT,    which state that any amount paid in pursuance… (read more)