In a case where assessee accepts certain additions in an order (giving rise to undisputed tax liability) and appeals against certain additions (giving rise to disputed tax liability), how the prepaid taxes will be adjusted against the disputed tax liability or undisputed tax liability?
FAQs on Direct Tax Vivad Se Vishwas Act, 2020
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Prepaid tax adjustment: identifiable TDS/TCS applied to corresponding income; unidentifiable amounts apportioned across liabilities in disputed assessments. Prepaid tax in the form of TDS/TCS that can be clearly identified with a particular source of income must be set off against the tax liability arising from that source; prepaid tax that cannot be clearly traced to a specific source should be apportioned against the remaining tax liability.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prepaid tax adjustment: identifiable TDS/TCS applied to corresponding income; unidentifiable amounts apportioned across liabilities in disputed assessments.
Prepaid tax in the form of TDS/TCS that can be clearly identified with a particular source of income must be set off against the tax liability arising from that source; prepaid tax that cannot be clearly traced to a specific source should be apportioned against the remaining tax liability.
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