Refer to question number 5. How will disputed tax be calculated in a case where disputed demand including interest has been paid by the assessee while being in appeal?

Disputed tax payment under settlement scheme may yield refund of excess payments and waiver of interest and penalty.

Where a declaration under the settlement scheme is accepted and the designated authority issues a certificate requiring payment of disputed tax at the stipulated percentage, prior payments in excess of the required disputed tax give rise to a refund of the excess without refund interest, and specified interest and penalties linked to the disputed demand are waived.