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

Dear Sir,

A Lady approximately aged 65 expired about 10 days back, she has a daughter who is living in USA. Her husband is living in India with his wife. Now, as he is old, he wants to shift from here to USA and would like to live with her daughter. Smt. A who expired has some fixed deposits in the bank (some in her personal name and some jointly with her husband). She also some property jointly and separately with her husband. Now the daughter and husband wants to encashed FD and also wants to dispose of property and to transfer this money to USA. Whether any TDS / TCS on cancellation of FDR and transfer of this money from India to USA will be deducted or collected by the Bank and also tell us the other provision.

Answer As we understand, Smt. A has expired and her husband wishes to leave India and settle in USA. The husband wishes to encash the FDs and dispose off the assets of the deceased. The query pertains to TDS and TCS implications on foreign remittance of the said sum.   Firstly, it would be important to see… (read more)
Query

The Assessment order received, shows 4 disallowances(to be added back to income of the assessee).
Form 1&2 had been filed for only one of the disallowances. The CIT has also issued form 3 accepting such form. Now, for filing of form 4, how do we attach the proof of withdrawal? As, the appeal pending, had been filed for all the 4 disallowances, and, the withdrawal is required only for one disallowance.
Please suggest.
Answer Please refer CBDT circular No  9  dt 22-4 -2020 question no 14 and Answer  , the Board clarified that picking and choosing issues for settlement of an appeal is not allowed . With respect  to one order , the appellant must choose to settle all issues and then only he would be eligible to file… (read more)
Query

Is there a time limit for online submission of Form 4, after receipt of form 3,. Also what is the process of obtaining proof of withdrawal incase case is pending with CIT (A). ?
Answer It is desirable to make the payment before 31 st March  2021.   As per section 4(2) of VSV Act, 2020, Appeal before the CIT(A) is deemed to be withdrawn when certificate under section 5(1) of VSV Act, i.e., Form 3, is issued. The assessee can   write to the CIT (A), enclosing the payment made under… (read more)
Query

There was a delay in filing the Appeal. Now, after payment of the tax amount, they rejected the application stating that there is no condonation received and the case is not eligible for as per FAQ 59 of circular No.21/2020.
Please advise how to go ahead.
Answer This being a bonafide mistake  , the  Designated  Authority  has the  power to take in to account the correct withdrawal letter filed by the assessee. The  assessee may contact the Designated Authority or can also revised application .  Please refer ,   Circular No. 21     dt. 4 -12 -2020 ,    Q. 89  and Ans .  The… (read more)
Query

I have submitted forn 4 of VSVS with tax challan payment but the attcachment for withdrawal of appeal has been due to clerical error attached of another assessee. However the correct Letter for withdrawal of appeal and challan has been sent by speed post to IT Department.
please guide.
Answer This being a bonafide mistake  , the  Designated  Authority  has the  power to take in to account the correct withdrawal letter filed by the assessee. The  assessee may contact the Designated Authority or can also revised application .  Please refer ,   Circular No. 21     dt. 4 -12 -2020 ,    Q. 89  and Ans .  The… (read more)
Query

Hi Team,

I have duly submitted form 1 and 2 and then received form 3. Subsequently, I deposited the balance tax amount and filed form 4. However, even after submission, “Submit Form 4” link is shown and now it has been 2 months, I have not received Form 5 yet.

I have also submitted online grievance on the ITR portal, but no action has been taken yet. Could you please advise who I could reach out for help?
Answer Please contact the Designated Authority or write to the  Designated Authority.  If the assessee does not get any response within a reasonable time  write to the CBDT . In case no response is received the assessee may have to  file Writ petition before High Court.     If it related to  Direct Tax Vivad Se… (read more)
Query

I had filed Form 1 under VSV Scheme after giving effect to Rectification order passed by A.O.
However DA.did not consider the same and issued the certificate in Form 3 without considering Rectification order passed by A.o whereby Dept.is showing I.T.liability higher by Rs.98658
What should I do?
Should I apply for Rectification before DA via mail?
Should I pay correct amt.of Tax?
Answer The assessee has to pay the tax in disputed demand after considering the rectification passed by the Assessing Officer .  The  assessee may file rectification application before the designated Authority or may also file revised application  under VSVS . Refer Circular No 9 dt 22 -4 -2020,  Q. No 46 and Ans . The Board … (read more)
Query

Disputed case of penny stock additions where assessment was completed U/s 143(3) has been considered as a search case and tax is calculated accordingly i.e. 125% of normal tax by CIT City 19 as per FAQ 70 dt. 04/12/2020, is his interpretation of FAQ 70 is correct, if not what is remedy. To my mind search cases are cases where assessment has been done U/s 153.
Thanks
Answer It seems the interpretation given by the CBDT is not correct. The asssessee may have to file Writ before the High Court.  Discussion is in progress to file Writ before the Bombay  High Court .     (read more)
Query

ITAT set aside the case for de novo assessment to AO and the assessment order has been not passed till date can we apply for VSV . date of order of ITAT is July, 2019
Answer Please verify  when the assessee has received the order of the ITAT.  Appeal against the order of the Tribunal can be filed  with in 120 days from the receipt of the  order as per section 260A(2) (a) of the order.  Please refer Circular No 9 /2020 dt 22  -4  -2020   Q. No. 1 and Ans… (read more)
Query

I have received form 3 from officer, now i have to payment.is it possible to pay dues in two challans instead of full value.. what is the procedure after that,.please let me know
Answer  Yes it is possible .  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 .  The certificate will be issued only when the full payment is made by the assesseee.   Also , refer Circular… (read more)