Direct Tax Vivad se Vishwas Rules, 2020 - 18/2020 - Income Tax

MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION NO. 18/2020 New Delhi, the 18th March, 2020 The Direct Tax Vivad Se Vishwas Rules, 2020 S.O. 1129(E).- In exercise of the powers conferred by sub-section (2) of section 12 read with sub-sections (1) and (5) of section 4 and sub-sections (1) and (2) of section 5 of the Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020), the Central Government hereby makes the following rules, namely:― 1. Short title and commencement. - (1) These rules may be called the Direct Tax Vivad se Vishwas Rules, 2020. (2) They shall come into force on the date of their notification in the Official Gazette. 2. Definitions. -In these rules, unless the context otherwise requires, - (a) Act means the Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020); (b) dispute means appeal, writ or special leave petition filed or appeal or special leave petition to be filed by the declarant or the income-tax authority before the Appellate Forum, or arbitration, conciliation or mediation initiated or given notice thereof, or objections filed or to be filed before the Dispute Resolution Panel under section 144C of the Income-tax Act , or application filed under section 264 of the Income-tax Act ; (c) eligible search cases means cases in which an assessment has been made under sub-section (3) of section 143 or section 144 or section 153A or section 153C of the Income-tax Act on the basis of search initiated under section 132 or section 132A of the Income-tax Act and the amount of disputed tax does not exceeds five crore rupees; (d) Form means the Forms appended to these rules; (e) issues covered in favour of the declarant means issues in respect of which (i) an appeal or writ or special leave petition is filed or appeal or special leave petition is to be filed by the income-tax authority before the appellate forum or (ii) an appeal is filed or to be filed before the Commissioner (Appeals) or objections is filed or to be filed before the Dispute Resolution Panel by the declarant, on which he has already got a decision in his favour from Income Tax Appellate Tribunal (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), or (iii) an appeal is filed or to be filed by the declarant before Income Tax Appellate Tribunal on which he has already got a decision in his favour from the High Court (where the decision on such issue is not reversed by the Supreme Court); (f) section means section of the Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020); (g) the words and expressions used in these rules and not defined but defined in the Act or Income-tax Act,1961 shall have the same meanings respectively as assigned to them in those Acts. 3. Form of declaration and undertaking.- (1) The declaration under sub-section (1) of section 4 shall be made in Form-1 to the designated authority. (2) The undertaking referred to in sub-section (5) of section 4 shall be furnished in Form-2 along with the declaration. (3) The declaration under sub-rule (1) and the undertaking under sub-rule (2), as the case may be, shall be signed and verified by the declarant or any person competent to verify the return of income on his behalf in accordance with section 140 of the Income-tax Act, 1961. (4) The designated authority on receipt of declaration shall issue a receipt electronically in acknowledgement thereof. 4. Form of certificate by designated authority .- The designated authority shall grant a certificate electronically referred to in sub-section (1) of section 5 in Form-3. 5. Intimation of payment. - The detail of payments made pursuant to the certificate issued by the designated authority shall be furnished along with proof of withdrawal of appeal, objection, application, writ petition, special leave petition, arbitration, conciliation, mediation or claim filed by the declarant to the designated authority in Form-4. 6. Manner of furnishing. - The Form-1 and Form-2 referred to in rule 3 and Form-4 referred to in rule 5 shall be furnished electronically under digital signature, if the return of income is required to be furnished under digital signature or, in other cases through electronic verification code. Explanation . For the purpose of this rule, electronic verification code shall have the same meaning as referred to in rule 12 of the Income-tax Rules, 1962. 7. Order by designated authority .-The order by the designated authority under sub-section (2) of section 5, in respect of payment of amount payable by the declarant as per certificate granted under sub-section (1) of section 5, shall be in Form-5. 8. Laying down of procedure, formats and standards.- The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down procedures, formats and standards for furnishing and verifying the declaration in Form-1 under sub-rule (1) of rule 3, furnishing and verifying the undertaking in Form-2 under sub-rule (2) of rule 3, granting of certificate in Form-3 under rule 4, intimation of payment and proof of withdrawal in Form-4 under rule 5 and issuance of order in Form-5 under rule 7 and the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the said declaration, undertaking, certificate, intimation and order. 9. Manner of computing disputed tax in cases where loss or unabsorbed depreciation is reduced. - (1) Where the dispute in relation to an assessment year relates to reduction in loss or unabsorbed depreciation to be carried forward under the Income-tax Act, the declarant shall have an option to (i) include the tax, including surcharge and cess, payable on the amount by which loss or unabsorbed depreciation is reduced in the disputed tax and carry forward the loss or unabsorbed depreciation by ignoring such amount of reduction in loss or unabsorbed depreciation; or (ii) carry forward the reduced amount of loss or unabsorbed depreciation. (2) Where the declarant exercises the option as per clause (ii) of sub-rule (1), he shall be liable to pay tax, including surcharge and cess, along with interest, if any, as a consequence of carrying forward the reduced amount of loss or unabsorbed depreciation in subsequent years: Provided that the written down value of the block of asset on the last day of the year, in respect of which unabsorbed depreciation has been reduced, shall not be increased by the amount of reduction in unabsorbed depreciation: Provided further that in cases other than the eligible search cases, in computing the reduced amount of loss or unabsorbed depreciation to be carried forward in clause (ii) of sub-rule (1), one-half of the amount by which loss or unabsorbed depreciation is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of declarant: Provided also that in case of eligible search cases, in computing the reduced amount of loss or unabsorbed depreciation to be carried forward in clause (ii) of sub-rule (1), one and one-fourth times of the amount by which loss or unabsorbed depreciation is reduced shall be considered for reduction and where the one and one-fourth times of the amount by which loss or unabsorbed depreciation is reduced exceeds the amount of loss to be carried forward before it s reduction, such excess shall be ignored: Provided also that in case of eligible search cases in computing the reduced amount of loss or unabsorbed depreciation to be carried forward in clause (ii) of sub-rule (1), five-eighth of the amount by which loss or unabsorbed depreciation is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of declarant. 10. Manner of computing disputed tax in cases where Minimum Alternate Tax (MAT) credit is reduced .-(1) Where the dispute in relation to an assessment year relates to reduction in Minimum Alternate Tax (MAT) credit to be carried forward, the declarant shall have an option to (i) include the amount by which MAT credit to be carried forward is reduced in disputed tax and carry forward the MAT credit by ignoring such amount of reduction, or (ii) carry forward the reduced MAT credit. (2) Where the declarant exercises the option as per clause (ii) of sub-rule (1), he shall be liable to pay tax, including surcharge and cess, along with interest, if any, as a consequence of carrying forward reduced MAT credit in subsequent years: Provided that in cases other than the eligible search cases, in computing the reduced amount of MAT credit to be carried forward in clause (ii) of sub-rule (1), one-half of the amount by which MAT credit is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of declarant: Provided further that in case of eligible search cases, in computing the reduced amount of MAT credit to be carried forward in clause (ii) of sub-rule (1), one and one-fourth times of the amount by which MAT credit is reduced shall be considered for reduction and where the one and one-fourth times the amount by which MAT credit is reduced exceeds the amount of MAT credit to be carried forward before it s reduction, such excess shall be ignored: Provided also that in case of eligible search cases in computing the reduced amount of MAT credit to be carried forward in clause (ii) of sub-rule (1), five-eighth of the amount by which MAT credit is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of declarant. Explanation For the purpose of this rule MAT credit means tax credit as per the provisions of section 115JAA or 115JD of the Income-tax Act. 11. Manner of computing disputed tax in certain cases (1) Where the dispute includes issues covered in favour of declarant, the disputed tax in respect of such issues shall be the amount, which bears to tax, including surcharge and cess, payable on all the issues in dispute, the same proportion as the disputed income in relation to issues covered in favour of declarant bear to the disputed income in relation to all the issues in dispute. Form-2 [See rule 3(2)] UNDERTAKING UNDER SUB-SECTION (5) OF SECTION 4 OF THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020 (3 of 2020) THE DIRECT TAX VIVAD SE VISHWAS RULES, 2020 To, The Designated Authority ............................................ ............................................ Sir/Madam, *I, ................................................................(name in block letters) son/daughter of Shri ............................................ having PAN/Aadhaar number/TAN having decided to avail the benefit of the Direct Tax Vivad se Vishwas Act, 2020 do hereby voluntarily waive all my rights, whether direct or indirect, to seek or pursue any remedy or any claim in relation to the tax arrear which may otherwise be available to me under any law for the time being in force, in equity, by statute or under any agreement entered into by India with any country or territory outside India whether for protection of investment or otherwise. *I, (name in block letters) son/daughter of Shri .....................................................designation ..on behalf of . (name of declarant) having PAN/Aadhaar number/TAN .being duly authorised and competent in this regard, the . (name of declarant) having decided to avail the benefit of the Direct Tax Vivad se Vishwas Act, 2020 do hereby voluntarily waive all its rights, whether direct or indirect, to seek or pursue any remedy or any claim in relation to the tax arrear which may otherwise be available to me under any law for the time being in force, in equity, by statute or under any agreement entered into by India with any country or territory outside India whether for protection of investment or otherwise. The above undertaking is irrevocable. I also confirm that I am aware of all the consequences of this undertaking. Place: .. .. Signature/Verification Date: .. Note: *Strike off whichever is not applicable. The undertaking is to be furnished in respect of tax arrear along with the declaration in Form-1. Form-3 [See rule 4] FORM FOR CERTIFICATE UNDER SUB-SECTION (1) OF SECTION 5 OF THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020 (3 of 2020) THE DIRECT TAX VIVAD SE VISHWAS RULES, 2020 Whereas Mr./Mrs./M/s.................................... (hereinafter referred to as the declarant) having PAN/Aadhaar number/TAN ..has filed a declaration under section 4 of the Act; Now, therefore, in exercise of the powers conferred by sub-section (1) of section 5 of the Act and after consideration of relevant material, the following amounts are hereby determined to be payable by the declarant towards full and final settlement of the tax arrear covered by the said declaration under the Act: Sl. No. Assessment year/ Financial Year Details of dispute settled Nature of tax arrear (disputed tax/ disputed penalty/ disputed interest/ disputed fee) Tax arrear (Rs.) Amount payable under section 3 (Rs.) Amount already paid against tax arrear Balance amount payable/ refundable after adjusting amount already paid (1) (2) (3) (4) (5) (6) (7) (8) = (6) (7) The declarant is hereby directed to make the payment of sum payable, if any, as per column (7) above within thirty days from the date of receipt of this certificate. In case of non-payment of amount payable within the said period, the declaration under Form-1 shall be treated as void and shall be deemed never to have been made. Certificate No. . Place ................... Date ..................... .................................... (Designated Authority) Form-4 [See rule 5] INTIMATION OF PAYMENT UNDER SUB-SECTION (2) OF SECTION 5 OF THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020 (3 of 2020) THE DIRECT TAX VIVAD SE VISHWAS RULES, 2020 To, The Designated Authority ............................................ ............................................ Sir/Madam, 1. Pursuant to the certificate received from designated authority in Form-3vide certificate No.___________dated_____ in respect of ______________________ ________________________________________________________(Name of the declarant)_____________PAN/Aadhaar number/TAN _________________for A.Y./ F.Y._____________, the detail of payments made is as under: Sl. BSR Code of Bank Date of Deposit (DD/MM/YYYY) Serial Number of Challan Amount (Rs) (1) (2) (3) (4) (5) 2. The appeal, objections, application, writ petition, special leave petition, arbitration, conciliation, mediation or claim has been withdrawn (please upload proof of withdrawal with number and forum thereof). Place: .. Date: .. Form-5 [See rule 7] ORDER FOR FULL AND FINAL SETTLEMENT OF TAX ARREAR UNDER SECTION 5 (2) READ WITH SECTION 6 OF THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020 (3 of 2020) THE DIRECT TAX VIVAD SE VISHWAS RULES, 2020 Whereas.............................................................................(Name and PAN/Aadhaar number/TAN of the declarant)(hereinafter referred to as declarant) had made a declaration under section 4 of the Act; And whereas the designated authority by Certificate No. .dated .................... determined the amount of ............................... rupees payable by / refundable to the declarant in accordance with the provisions of the Act and granted a certificate setting forth therein the particulars of the tax arrear and the amount payable / refundable after such determination towards full and final settlement of tax arrear; Now, therefore, in exercise of the powers conferred by sub-section (2) of section 5 read with section 6 of the Act, it is hereby certified that- (a) a sum of Rs. has been paid by the declarant towards full and final settlement of tax arrear determined in the order No. .dated .............; and (b) the immunity is granted subject to the provisions contained in the Act, from instituting any proceeding for prosecution for any offence under the Income-tax Act or from the imposition of penalty under the said enactment[as per section 6 of the Act], in respect of the tax arrear as detailed in the table below: Assessment year/ Financial year Details of dispute settled Nature of tax arrear(disputed tax / disputed penalty / disputed interest / disputed fee) Amount of tax arrear It is hereby clarified that making a declaration under this Act shall not amount to conceding the tax position and it shall not be lawful for the income-tax authority or the declarant being a party in appeal or writ petition or special leave petition to contend that the declarant or the income-tax authority, as the case may be, has acquiesced in the decision on the disputed issue by settling the dispute. Place ................... .............................................. Date ..................... ..................... (Designated Authority) To (1) The declarant (2) Assessing Officer (3) Concerned Principal Commissioner of Income-tax (4) Concerned Appellate Forum Note : Strike-off whatever is not applicable. [F. No. IT(A)/1/2020-TPL] ANKUR GOYAL, Under Secy.