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

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

What if the payment to be made under the Scheme after the receipt of Form 3 is not paid within the due date given for payment along with additional amount(i.e Oct 31st 2021)
Will the appeal already filed hold good or will the appeal be treated as withdrawn and revert back to assessment proceedings
Answer Appeal will hold good only the immunity under VSV Scheme is not available to the assessee.  Please refer Circular No 9/2020   dt.22-4 -2020 ,    Q. 49 . Once declaration is filed under Vivad Se Vishwas and for financial difficulties ,payment is not made accordingly , will the declaration be null and void ? Answer: Yes… (read more)
Query

Amount Payable under Form-1 filed by me was Rs. 1,89,846 and Rs. 2,08,831 (10% extra option). Department issued Form-3 and amount payable was Rs.2,37,811 and Rs. 2,56,794 (10% extra).

Later on they corrected suo moto due to clarification regarding 125% applicability and Amount payable was shown as Rs. 1,90,350 and Rs. 2,09,385 (10% extra).

Due to error on the Income Tax Portal we were not able to download Form-3 till 30/09/2021. We had spoken several time with the helpline numbers. At last it was downloaded on 7th October,2021.

My client had paid Rs. 1,89,846 before 30th September,2021 as per Form-1. Form-3 came later on.

Now my query is how much additional amount my client will have to pay :

1) Rs. 504 (Difference of Form-1 and Form-3) OR

2) Rs.554 (Difference of Form-1 and Form-3 – Rs. 504 plus Rs. 50 (10% extra) OR

3) Rs. 19539 (Difference of Rs. 209385 (Total Additional Amount as per Form-3) – Rs. 189846 (Amount Paid)

Please guide. This situation has arisen due to Departmental Portal issue without any fault of the Client
Answer The tax has to be  paid as per the provisions of the Act . The tax consultant may be able to guide on verification of records . The assessee may write to the Designated Authority and  Chairman CBDT. The     Assessee may also send the copy of letter addressed to the Designated Authority  to grievance cell… (read more)
Query

What is the time limitation for issue of refund by the department determined in Form 5 of VSV? If the refund is not received within the said time limit then whether the assessee is entitled for interest on the delayed period and what is the procedure. pl. guide
Answer There is neither  time prescribed under the Act nor interest is payable to  the assessee.  The assessee may make an request in writing  to the Designated Authority  to grant the refund with interest at the earliest . If no response is received   within reasonable time  the assessee may file writ before the High Court. High… (read more)
Query

The AO adjusted tax payable under Vivad Se Vishwas (VSV) Scheme while passing rectification order u/s 154 for correction of mistakes in the assessment order and calculated refund. This rectification order was passed after assessee filed Form 1 and 2 of VSV Scheme.

The DA has now issued Form 3 showing ‘0’ amount in Tax payable arrear and Amount payable under DTVSV.

Since department has already recovered tax payable in DTVSV in rectification order passed u/s 154, should the assessee file a rectification of Form 3 so that the tax paid in VSV is correctly shown in Form 3 and Form 5.
Answer Please refer circular No 21/2020 dt 4 -12 -2020 .    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 : Yes ,  declaration can be… (read more)
Query

Sir,

The option to file Form 4 under DTVSV has disappeared from the IT portal. Help line person told that it has been removed as due date to file the Form 4 is over on 30/09/2021.

Is it true? What can be done now. As I’ve received from 3 and have paid tax also.

Earlier I could not file the form as it did not move once appeal withdrawal letter was attached.

Please guide me.

Thank you,
Answer Please send the form No 4  by registered post to the Designated Authority . Assessee  may also write to Chairman CBDT .    Assessee may also send the copy of letter addressed to the Designated Authority  to grievance cell of  assessee’s jurisdiction .   The Grievance Cell has to action with in 21 days  of receipt of… (read more)
Query

sir
we have submitted , after completing all the requirements of the form 4.

But it is showing us the pin code not matching. we have tried so many times but unable to upload this document only because of this error.

please kindly help us by giving us proper instructions to move forward in this aspect .
thank you
suresh
Answer : Please send the form No 4  by registered post to the Designated Authority . Assessee  may also write to Chairman CBDT .    Assessee may also send the copy of letter addressed to the Designated Authority  to grievance cell of  assessee’s jurisdiction .   The Grievance Cell has to action with in 21 days  of receipt… (read more)
Query

Form 5 received. CIT(A)- NFAC has also dismissed the appeal due to Form 5. But the AO has not received the copy of order dismissing the appeal from NFAC and he is not accepting the copy available on e-proceeding tab of the Assessee. So, AO is denying the remove the demand from portal. What to do.
Answer The assessee may  write to the Assessing Officer  as well as Designated Authority  and the CBDT.   The Assessee  may also  write to Grievance  Cell of the Income   Tax department  . The Grievance Cell has to action with in 21 days  of receipt of the petition .  The Procedure  for Grievance Redressal is published in the… (read more)
Query

I received Acknowledgement Number :237657430020221 of Form 5 from PCIT Bhubaneswardated 03/02/2021 where the designated authority by certificate no.220126670190121 dated 19/01/2021 determined the amount Rs -2731557 rupees refundable to me.But till now I have not received any refund and no further communication from Income Tax department.

I am a senior citizen of about 70 years old.Kindly suggest what shall I do.
Answer Please write to the Designated Authority and also the Assessing Officer to  send the refund at the earliest . In case no reply is received within fifteen days , you may have to write to Grievance  Cell of the Income   Tax department  . The Grievance Cell has to action with in 21 days  of receipt… (read more)
Query

RESPECTED SIR,
Main DTVSV KA FORM NO 4 FILLED Kar rahi hu. lekin muze date of deposite ki jo date hai usme error a rahi hai portal o date accept nahi kar rahi hai.
so, please guide me.
thank you.
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

I Had already filed Form- 1 & 2 on 31st jan 2021 & was issues form 3 on 11th Feb 21 & I even made the entire payment as asked in form 3 on 31st March 21 & also filed form 4 on 24th May 21 but yet not got Form 5 even after 5 months, I am shocked to see there is outstanding demand showing along with interest which is increasing day by day, what should I do? I seriously need help please help
Answer The assessee may write to the Designated  Authority to issue the Form no 5. In case no response is received  with in 15 days the assesse may write to the Chairman CBDT . Even after writing to CBDT no response is  received  with in 15 days  the assessee may file writ before the High Court.… (read more)