| Query | Consider for example GTI is Rs 10 Cr and deduction u/s 80 is available for Rs 22 Cr,& as such taxable income is negative Rs 12 Crore MAT income is Rs 14 crore. The assessing office made addition of Rs 15 crore which result in taxable income of Rs 3 crore. MAT income also increase by 1 crore.how to show the same in VSV form. |
| Answer | Please refer Circular No . 9 dt 22 -4 2020. Q. No 55 and answer given by the CBDT. In case any further difficulty it may be desirable to approach the Designated Authority , they will guide properly . |
| Query | My appeal is pending before CIT(A), now all CIT(A) are abolished to Faceless scheme and I have not received any notice yet for hearing from Faceless unit, where do i file appeal withdrawal letter as there is no link in e-proceeding portal. CIT(A)- 44, Mumbai where I had filed my appeal is no more exist. Pl suggest. |
| Answer | The assessee may be having the acknowledgment for filing an appeal . The assessee can file the letter for withdrawal of appeal to the office of the CIT (A) where the appeal was filed . They will forward the same to the respective jurisdiction . Please refer Circular No 9 of 2020 dated 22-4-2020 Q. No 43 . and answer , where the assessee has made request for withdrawal and such request is under process , proof of request made shall be enclosed . It is the designated Authority has to issue the certificate . For further clarifications the assessee is advised to approach the Designated Authority .
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| Query | Based on my application under VSVS,2020, Form No.3 was issued and paid the balance amount payable. This information was shared in Form 4 on time. Even after completion of all these steps, my application got rejected stating that there was a delay in filing the appeal with CIT (A), and condonation was not received and the case is not eligible. Kindly note that even though there was a delay in filing the Appeal, I was called for the hearing. Therefore, it is evident that the condonation was granted by the competent authority. I sent a grievance but no response from them. Please advise me on how to go ahead further. Can we submit a revised application? |
| Answer | Please refer Circular No 21 /2020 dt 4-12 -2020 Q. No 59 and Answer . The Board has clarified that if the Condonation of delay application was filed before 4 -12 -2020 and the appeal is admitted by the Appellate Authority before date of filing of the declaration such appeal will be deemed to be pending as on 31st Jan 2020 . If the assessee is able to demonstrate that the delay was condoned the assessee is eligible to take advantages of the Scheme . The assessee may approach the Designated Authority or file Revised application enclosing the date of application for condonation of delay and also try to get the order sheet wherein the CIT (A ) has condoned the delay . If no response is received the assessee may have to file Writ before the High Court .
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| Query | Form 4 filled on Dec 16, 2021 and still awaiting form 5. Received 3 separate notices u/s 250 from CIT(A) National faceless appeal centre asking to upload request for withdrawal of appeal, appeal no. form 1, 3 & 5 (if issued). First two times submitted as requested in time without form 5 as not yet issued and hence unable to understand why once again third time same notice is received. What to do now ? How to seek clarification on what they want as submitted everything earlier as requested ? And all this delaying form 5 issuance. Thanks |
| Answer | As per section 5 of VSV Act, 2020 and Rule 7 of VSV Rules, 2020, there is no prescribed time period within which the Designated Authority has to issue Form 5 i.e. Order of full and final settlement.
Further, 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
Therefore, it is advisable to intimate the National Faceless Appeal Centre about receipt of Form 3 and payment made in Form 4. Please refer Circular No 9 of 2020 dated 22-4-2020 Q. No 43 . and answer , where the assessee has made request for withdrawal and such request is under process , proof of request made shall be enclosed . It is the designated Authority has to issue the certificate . Further, if certain hesitation persists, it is advisable to approach the designated authority for further clarifications.
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| Query | Hi, We have received Form 3 from the department. We had disclosed TDS and MAT credit as pat of item “refund claim in assessment” under Part D. However, the designated authority has not takent this into account while issuing Form 3. Is there a way to have this corrected or where designated authority rejects the claim, can any appeal be made against Form 3? |
| Answer | There is no appeal is provided . If the assessee is aggrieved, they have to file writ before the High Court. Please refer Circular No 9 dt 22-4 -2020 , Q. No. 53 . Answer. , regarding MAT calculation
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| Query | Form 4 filled on Jan 6, 2021 and still awaiting form 5. Received 3 separate notices u/s 250 from CIT(A) National faceless appeal centre asking to upload request for withdrawal of appeal, appeal no. form 1, 3 & 5 (if issued). First two times submitted as requested in time without form 5 as not yet issued and hence unable to understand why once again third time same notice is received. What to do now ? How to seek clarification on what they want as submitted everything earlier as requested ? And all this delaying form 5 issuance. Thanks |
| Answer | As per section 5 of VSV Act, 2020 and Rule 7 of VSV Rules, 2020, there is no prescribed time period within which the Designated Authority has to issue Form 5 i.e. Order of full and final settlement.
Further, 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
Therefore, it is advisable to intimate the National Faceless Appeal Centre about receipt of Form 3 and payment made in Form 4. Please refer Circular No 9 of 2020 dated 22-4-2020 Q. No 43 . and answer , where the assessee has made request for withdrawal and such request is under process , proof of request made shall be enclosed . It is the designated Authority has to issue the certificate . Further, if certain hesitation persists, it is advisable to approach the designated authority for further clarifications. |
| Query | The assessee has already made the payment as per form 3 received. After which, the ITAT order is passed allowing all the claims of the assessee. Now, should the assessee continue with filing of form 4 and then start with the refund application process? or not file form 4 and directly request for refund of the amount paid from the Assessing officer? |
| Answer | It is pertinent to note that, as per section 7 of VSV Act, 2020, Any amount paid in pursuance of a declaration made under section 4 shall not be refundable under any circumstances. This has been further clarified vide FAQ 42 in CBDT Circular No. 9 of 2020 dated April 22, 2020. Therefore, it is advisable not file Form 4 and to collect the amount paid as a refund of tax paid under normal circumstances. |
| 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 if the deceased has left a will. In the even of a will, the inheritance will be in accordance with the Will. In the event, there is no will in place, the same will be an intestate succession and the provisions of the Hindu Succession Act (assumed) will follow.
It is pertinent to note that, as per the Liberalised Remittance Scheme of the RBI all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
When the property is sold the assessee has to pay the tax subject to indexation . Daughter being relative no tax is payable when the amount is sent to daughter
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