TaxTMI 
TaxTMI 
Guidance Note 1/2024 on provisions of the Direct Tax Vivad se Vishwas Scheme, 2024
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.... enactment of the DTVSV Scheme, 2024, several queries were received from the stake-holders seeking guidance in respect of various provisions contained therein. 3. Accordingly, under Section 97 of the DTVSV Scheme, 2024 which empowers the Board to issue directions or instructions in public interest, following Guidance Note in the form of answers to the frequently asked questions (FAQs) is hereby issued. This will be helpful for the tax-payers for creating better awareness and understanding with respect to the provisions of the Scheme. S. No. Issue Comments Eligible Cases 1 Which appeals are covered under Direct Tax Vivad Se Vishwas Scheme, 2024? Please refer to section 89 of the Direct Tax Vivad Se Vishwas Scheme, 2024 ('the DTVSV Scheme, 2024' or 'the Scheme") [contained in Chapter IV of the Finance (No.2) Act, 2024]. Section 89 of the Scheme provides for the definition of "appellant" which is - (i) a person in whose case an appeal or a writ petition (WP) or special leave petition (SLP) has been filed either by him or by the income-tax authority or by both, before an appellate forum and such appeal or petiti....
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....disputed tax, interest, penalty (Old appellant) 110% of disputed tax 120% of disputed tax 3 Tax arrears related to disputed interest/penalty/fee (New appellant) 25% of disputed interest/ penalty/ fee 30% of disputed interest/ penalty/ fee 4 Tax arrears related to disputed interest/penalty/fee (Old appellant) 30% of disputed interest/ penalty/ fee 35% of disputed interest/ penalty/ fee • Where an appeal/writ petition/SLP is filed by the income-tax authority on any disputed issue, the amount payable shall be 50% of the amount payable specified in the Table above. • Where an appeal is filed by the appellant before the Commissioner (Appeals) / Joint Commissioner (Appeals) or objections are filed before the Dispute Resolution Panel on any issue on which he has already got a decision in his favour from the ITAT (where the decision on such issue is not reversed by the High Court or the Supreme Court) or the High Court (where the decision on such issue is not reversed by the Supreme Court), the amount....
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....ch assessments 6 Kindly clarify which assessments shall be considered to have been made on the basis of search initiated under section 132/132A of the Act? Assessments framed under section 153A or 153C are clearly made on the basis of search initiated u/s 132/132A. Therefore, such cases shall not be eligible for the DTVSV Scheme, 2024. For other cases where assessments have been made u/s 143(3)/144/147, following three sets of cases shall be considered as cases where assessments have been made on the basis of search initiated u/s 132/ 132A. These cases are:- (i) Where a search is initiated Under section 132 or books of account, other documents or any assets are requisitioned under section 132A, on or after the 1st day of April, 2021, in the case of the assessee and assessments have been made consequently; or (ii) Where the Assessing Officer has drawn satisfaction, with the prior approval of the Principal Commissioner or Commissioner, that any money, bullion, jewellery or other valuable article or thing, seized or requisitioned under section 132 or section 132A in case of any other person on or after the 1st day of April,....
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.... limit to file appeal not expired on 22.7.24 9 Extant provisions of DTVSV Scheme, 2024 does not cover cases where Taxpayer would have received orders but the lime limit to file an appeal / special leave petition had no expired as on 22 July 2024. Is there any possibility that such cases can be covered in the Scheme? As per section 89(1) of the Scheme, it is clear that the appeal has to be pending as on the specified date i.e. 22.07.2024 for an appellant to be eligible for the Scheme. The definition of appellant also covers cases where the DRP has issued directions u/s 144C(5) but the AO has not completed the assessment u/s 144C(13). Therefore, the Scheme does not provide for eligibility of those cases where an appeal is not pending as on 22.7.2024 except for DRP cases referred above. Settling issues in Part 10 Where disputed tax contains qualifying tax arrears along-with non-qualifying tax arrears (such as, tax arrears mentioned in section 96(a) for eg. tax arrear in respect of undisclosed foreign income), whether the taxpayer can apply for the Scheme in such a case? As per section 91(2) of the Scheme, after filing of decl....
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....otective or the substantive addition, as the case may be, relating to the same issue in the case of the same taxpayer or in the case of another taxpayer. Disputes relating to other direct-taxes 13 Are disputes relating to wealth tax, security transaction tax, commodity transaction tax and equalisation levy covered? No. Only disputes relating to income-tax are covered. Request for withdrawal of appeal made 14 If a taxpayer has requested for withdrawal of appeal under section 91(3) of the Scheme and the appeal is not yet allowed to be withdrawn, how will the taxpayer furnish proof of withdrawal in such cases? Where assessee has made request for withdrawal and such request is under process, proof of request made shall be enclosed. Interest waiver applications 15 With respect to interest under section 234A, 234B or 234C, there is no appeal but the assessee has filed waiver application before the competent authority which is pending as on 22.7.2024? Will such cases be covered under the Scheme? A taxpayer who has filed a waiver application is not an appellant u/s 89(1)(a) of the Scheme. Therefore, s....
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.... assesses settles TDS appeal (against order u/s 201 of the Act) as deductor of TDS, will credit of such tax be allowed to deductee? Yes. However, the credit will be allowed as on the date of settlement of dispute by the deductor and hence the interest as applicable to deductee shall apply. 21 When assessee settles his own appeal under DTVSV Scheme, 2024, will consequential relief be available to the deductor in default from liability determined under TDS order u/s 201 of the Act? Yes. In such a case, the deductor in default would not be required to pay the corresponding TDS amount. However, he would be required to pay the interest under sub-section (1A) of section 201 of the Act. If such levy of interest under sub-­section (1A) of section 201 of the Act qualifies for DTVSV Scheme, 2024. the deductor in default can settle this disputed interest by filing up the relevant schedule of disputed interest, Consequential relief u/s 40(a)(i)/(ia) 22 Where assessee settles TDS liability as deductor of TDS under DTVSV Scheme, 2024 (i.e. against order u/s 201), when will he get consequential relief of expenditure allowance under provi....
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....shwas Rules, 2024 which is reproduced as under:- "where the appellant and the income-tax authority have both filed an appeal or writ petition or special leave petition in respect of the same order, single Form-1 shall be filed by the appellant." Accordingly, relevant Schedules in Form-1 have to be filled out by the appellant and the disputed tax would be worked out. Writ on 148/148A notice 26 If a writ has been filed against a notice issued under section 148/148A of the Act and no assessment order has been passed consequent to that notice, whether such cases are eligible under the Scheme? The income in such cases is yet to be determined. Therefore, the disputed tax is not ascertainable. Thus, the taxpayer would not be eligible for the Scheme in such cases. Appeal before HC/SC yet to be admitted 27 If appeal is filed before High Court or Supreme Court and is pending for admission as on 22.7.2024, whether the case is eligible for DTVSV Scheme, 2024? Yes. Cross objections & MA 28 Whether cross objections filed and pending as on 22.7.2024 will also he covered by the Scheme....