Articles

CBDT Issues Further FAQs Clarifying some Critical Issues in Vivad se Vishwas Scheme, 2020

The Apex Body CBDT has issued Circular No. 21/2020 dated 4.12.2020 containing FAQ's & Clarifications on some crucial & vital issues in the Vivad se Vishwas Scheme, 2020. This Circular has been issued in continuation of its earlier Circular No. 9/2020 dated 22.4.2020 (containing Questions 1 to 55), containing 34 more FAQs (Q. no. 56-89).

For ready reference of our worthy readers, the said CBDT Circular No. 21/2020 dated 4.12.2020 containing 34 more FAQs (Q. no. 56-89), is being enclosed as per the pdf file below.

Further, the practicalities and nuances of filing the online Declaration Forms under the Vivad se Vishwas Scheme are also being analysed and discussed in the form of undermentioned FAQs.

FAQs on filling forms under Vivad Se Vishwas Scheme

Q1: As per the form, the Assessee is required to mention reference number of appeal filed by it. When the matter is pending with CIT (A), Appeal No. may not be available with Assessee, as notice might not have been issued. Whether acknowledgement number of appeal can be mentioned?
Reply: The label of “Appeal Reference Number” may be treated as “Appeal Reference Number /Acknowledgment Number” in all schedules and in Part B “Reference Number” as “Reference Number / Acknowledgment Number”

Q2: When Hon’ble ITAT has decided the appeal before 31st January, 2020 and time limit for filing appeal has not yet expired and as per form when due date of filing of appeal is mentioned, Assessee cannot proceed to file details regarding disputed tax. Only when appeal number is mentioned, then only Assessee can fill up necessary schedule.
Reply: Department has enabled the schedules in above case on 26th March, 2020. Updated online Form is available on e-Filing portal.

Q3: If appellate authority has set aside an order, (except where assessment is cancelled with a direction that assessment is to be framed de novo), to the file of AO for giving proper opportunity, Assessee would be eligible to avail of Vivad Se Vishwas. However, in the prescribed form, no tab or schedule for such cases are available.
Reply: Declarant can fill the required details in Part B itself mentioning that the appeal is pending with CIT(A), as explained in FAQ No 7 issued by CBDT vide Circular 7/2020 dt 4th March 2020

Q4: As per the Scheme once the declaration made by Assessee is accepted by designated authority and Form 3 is issued, the declarant shall pay the amount determined within 15 days of receipt of certificate and intimate the details of such payment to the designated authority. As per the Scheme Assessee has an option for making payment on or after 1st April, 2020 but before the last date after making additional payment as prescribed. Suppose, form No. 3 is issued by designated authority on or before 31st March, 2020, Assessee can pay taxes along with additional amount before the last date even if 15 days have lapsed or the form will be void.
Reply: As per the Notification No. 85/2020 dated 27th October 2020, the declarant is permitted to pay tax on or before 31st day of March 2021 as mentioned in the table line item “Balance amount payable / refundable after adjusting amount already paid”

Q5: How the TDS deductors will file in case they don't have PAN?? Kindly clarify as they can't login into e-filing website and they don't have facility on CPC-TDS. Kindly guide.
Reply: Deductors have to login using TAN. They can do so in a similar manner when they filed appeal in TDS cases or how they file TDS statements on e-filing portal -they use their TAN as user ID. Taxpayers using their PAN based login cannot file TDS related Form 1. The respective deductors have to login using TAN as user ID in the e-Filing portal.

Q6: What has to be entered in the Part E (IV) - Refund?
Reply: In the Form 1, what is visualized in Part E is the reporting of claim of tax payment under Minor head 400 (incl Adjustment RO) after the assessment order is passed. Therefore, there is no requirement of TDS or prepaid taxes - advance tax or SAT. Since any RO adjusted against demand has a corresponding challan, same has to be reflected under tax payment as Regular Assessment Tax (Minor head 400). The E (iv) is for cases where the refund claimed by taxpayer was reduced in assessment (not refund adjusted against arrears - the label is incorrect and will be changed). This is because the PART F visualizes the actual tax payment or Refund as case may be against the disputed tax amount payable under the scheme (this is post assessment).

Example - Refund adjusted will figure in tax payment itself as a challan. This is for refund reduction- when taxpayer claimed 100 Rs but ITD raised additional demand of 80 Rs, so refund will be reduced to 20 Rs. To enable taxpayer to show this in E (iv) as Rs 80, the refund row has been put.

Q7. Whether it is possible to make payment of taxes under the VsV scheme before filing of Form 1.
Reply: Yes, such payments can be reflected in Form 1 itself in Part E.

Q8. Whether challan for making payment of taxes under VsV scheme is the same as 400 (or any other existing codes) challan? Or any other new specific challan code is being introduced for the same If yes, when is new challan code likely to be introduced.
Reply: Yes, Challan under VsV scheme will be usual Regular Assessment Tax challan – Corporation Tax or Income Tax (as the case may be) - with minor head 400. Please take care to ensure that PAN and AY are correctly mentioned. NO NEW CHALLAN has been released for DTVSV

Q9. Where multiple appeals are pending in respect of disputed tax before the same appellate forum and for the same Assessment year, how to furnish details of multiple appeals in relevant sub-schedule of Schedule A?
Reply: In case multiple appeals are pending before the same appellate forum for same Assessment year in respect of disputed tax, the details of individual appeals may be filled in Part B separately for each appeal. The details of Income, Disputed tax, Tax arrears and Amount payable under DTVSV may be aggregated and filled in the applicable Sub-Schedule of schedule A. The appeal reference numbers of all appeals made be mentioned in the applicable field of schedule A, separated by a punctuations i.e. comma or full stop etc.

Q10. Where can I enter TDS / TCS deducted for an Assessment Year in DTVSV Form 1?
Reply: In the Form 1, what is visualized in Part E is the reporting of claim of tax payment under Minor head 400 (incl Adjustment RO) after the assessment order is passed. Therefore, there is no requirement of TDS or prepaid taxes -advance tax or SAT to be entered.

Q11. Can I file TDS appeal using PAN login?
Reply: Yes, appeals related to TDS w.r.t. Section 194IA or 194IB only can be filed using PAN Login.

Q12. How to file DTVSV Form-1 with respect to block period in case of search case?
Reply: The first AY of the Block period may be used to file DTVSV Form 1. Similarly tax payments has to be made in first AY of the Block Period and also mention in attachment that same is with respect to Block Assessment.

For ready reference of our worthy readers, the  CBDT Circular No. 21/2020 dated 4.12.2020 containing 34 more FAQs (Q. no. 56-89), is being enclosed as per the pdf file below.