Re: Issue or Appeal

Whether the settlement is qua issue or qua appeal? Whether there should be tax payable by taxpayer in order to avail the scheme? How to compute disputed tax in loss cases?

The settlement can be done only qua appeal and not issue wise. 

 

As clarified by FAQ no 9 of CBDT Circular dated 4 March 2020, taxpayer can opt for VSV scheme, irrespective of whether tax  arrear has been paid either partly or fully or are outstanding.

 

In cases where taxpayer has incurred losses, he can opt VSV scheme and settle the dispute under following options: 

 

Option 1 – Pay tax on such loss and carry forward the full loss.  

Option 2 – Carry forward the reduced the loss without paying any tax.  

 

CBDT will prescribe the manner of computation in such cases.

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