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

if assessee want to rectify Form 4 as date for filing form 4 is 30 oct…but form 5 has been issued…in such case can the assesee still revise form 4
Answer Please refer CBDT  Circular 21 of 2020 (2020) 429 ITR (St) 001with a view to provide clarification     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 :… (read more)
Query

In Form 4 of VSVS bank payment details are must. Demand of the assessee was adjusted against the refund and now as per Form 3 there is refund. How can the tax payment details filled up in Form 4. Please guide.
Answer The assessee may  state the amount of refund adjusted with the date of adjustment . and also mention the tax payable will be nil .   (read more)
Query

Last date for vivad se vishwas scheme appeal
Answer  30 -9 -2021 was Last date for beneficial payment under the VSV Act, 2020 extended by CBDT, vide Notification No. 94 of 2021 dated August 31, 2021 (2021) 437 ITR (St) 13 and 31 -10 -2021 was  Last date for  payment under the VSV Act, 2020 extended by CBDT, vide Notification No.75 of 2021 dated June 25,… (read more)
Query

Please clarify that whether the tax payment under VSVS to be made by 31.10.2021 has to be 110% of whole of disputed tax or on such payment which remained to be on 30.09.2021
Answer 31 -10 -2021 was  Last date for beneficial payment under the VSV Act, 2020 extended by CBDT, vide Notification No.75 of 2021 dated June 25, 2021(2021) 435 ITR (St) 25 Please  refer Circular No 18 /2020 dt 28 -10 -2020 ( 2020 ) 428 ITR 104 (St)  , circular in respect of payment of tax .… (read more)
Query

The assessee had filed their application in Form 1 & 2 in the month of January 2021.
The assessee received Form 3 in Sept 2021 and paid tax on 29.09.2021. But when I fill the payment details I get the message that date of payment can not be prior to the date of filing of Form 1 & 2.
Whether this is due to the problem in the efiling Website?
What should I do for this
Answer Please write to the Designated Authority  and Chairman CBDT. You may also write to Shri S.R.  Wadhwa  Advocate ,Chairman Representation  committee of the All India Federation of Tax Practioners (AIFTP ) ,who is interacting  with the  Central Board of Direct taxes (CBDT)   on day to day basis as regards  the functioning of portal . His… (read more)
Query

Sir,
As per Form 3 issued by the CIT, there is no demand and the assessee need not pay any further sum as tax because of TDS Credit already available.

How can I fill Form 4 in the payment particulars. Without filling that section of Form 4, I am unable to file.
Please advise me.
Answer The assessee may state in the payment particulars the refund due to the assessee and  details of tax deducted at source .   (read more)
Query

Sir, I opted for Vivad se Vishwas and filed form 1 and 2 and received form 3. Can we file form 4 before receiving the CIT(A) as proof of withdrawing the appeal . Eventhough I requested for withdrawing the appeal the CIT (A) faceless scheme not responded.
Kindly advise.
Answer Yes  . Please refer CBDT Circular No. 9 /2020  dt. 22-4 -2020 ,   Q. 43 and answer .  which reads as under “ Under the amended procedure no appeal is required to be withdrawn  before the grant of certificate by DA under section 5. , the appellant is required to withdraw appeal or writ or… (read more)
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 The assesseee may write to the Office of the CIT (A) informing   that the  assessee  has filed form No 4 and awaiting signed Form 5 under VSV Scheme ,hence the matter may be adjourned . The Assessee may also write to the  Designated Authority to send the Signed Form 5 at the earliest .   … (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)