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TMI BlogGuidance Note 2/2024 on provisions of the Direct Tax Vivad se Vishwas Scheme, 2024X X X X Extracts X X X X X X X X Extracts X X X X ..... me, 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, Guidance Note 1/2024 in the form of answers to the frequently asked questions (FAQs) was issued vide circular no. 12 of 2024 dated 15.10.2024 . However, several other queries have been received from the stake-holders for the clarification. Thus, Guidance Note 2/2024 in the form of answers to the frequently asked questions (FAQs) is hereby issued to provide further clarification. This will be helpful for the tax-payers for creating better awareness and understanding with respect to the provisions of the Scheme. 4. In the present Guidance Note 2/2024, FAQ No.8 of the Guidance Note 1/2024 has been modified and incorporated as FAQ No. 36. Thus, FAQ No.8 of the Guidance Note 1/2024 shall be considered as omitted. S. No. Issue Comments Eligibility of cases 36 . Suppose a taxpayer is eligible to apply for DTVSV Scheme, 2024 as his appeal is pending as on 22.7.2024. But subsequently, before the taxpayer could file declara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and pending as on 22 n d July, 2024 is eligible for DTVSV Scheme, 2024 ? Yes. Any appeal filed against intimation u/s 143(1 ) of the Act and pending as on 22 nd July , 2024 is eligible for settlement under t he Scheme. 42. Sec tion 248 of the I T Act relates to appeal by a person denying liability to deduct tax in certain cases. As per the provisions of this sect ion , no appea l can be filed where tax is paid to the credit of the Cent ral government on or after 1.4.2022. Whether appeal filed prior to 1.4.2022 under s ect i on 248 of the Act is eligible for DTVSV Scheme, 2024 ? Yes. 43. Where information has been received under an agreement referred to in section 90 or section 90A of the Act ; however, such information has not been ' used' for making additions in assessment/ reassessment order. In such cases , whether the assessee can opt for DTVSV Scheme 2024 ? Yes. Section 96 of the DTVSV Scheme, 2024 clearly states that the Scheme shall not apply where tax arrears relate to assessment or reassessment made on the basis of information received under section 90 or section 90A of the Act. Accordingly, where information received u /s section 90 or section 90A has not been use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prosecution has been instituted on or before the date of filing of declaration. Accordingly, where the prosecution proceedings have not yet been filed before a court of law , the taxpayer can opt for the Scheme . 49. If the prosecution i s for a different a ssess ment year and the appeal for a different one, would it debar the assessee from the benefit of this scheme? No. Section 96(a)(ii) prohibits such cases relating to an assessment year in respect of which prosecution has been instituted on or before the date of filing of declaration . Thus , prosecution in one assessment year does not debar the assessee from filing declaration for any other assessment year, if it is otherwise eligible. Computation of Amount Payable 50. The DTVSV Scheme, 2024 provides for the different rates where declaration is fi led on or before 31.12.2024 and where it is filed on or after 1.1.2025. Please clarify whether payment of disputed amount is also required to be made before 31.12.2024 for applicability of the lower rate? Reference may be made to the provisions of the Scheme read with DTVSV Rules, 2024 . As per Rule 3 of the DTVSV Rules , 2024 , the amount payable is linked to the date of filing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantum appeal pending as on 22 nd July , 2024, there is no disputed income or disputed tax as on the specified date i.e. 22 n d July, 2024. Therefore , such penalty can be sett l ed separately under the Scheme as per SI. No. (c) (d) of the Table in section 90 of the Scheme . 54. Whether appeal against penalties that are not related to quantum assessment like penalty u/ s 271 B , 271BA , 271DA of the Act etc. are also waived upon settlement of appeal re l ating to disputed tax? No, appeal against such penalty order is required to be settled separately. APA/MAP cases 55. In case of APA/MAP, can the Scheme be opted for settling disp u tes pertaining to non - APA/MAP adjustments ? The Scheme envisages settling dispute in full. The Scheme doe s not envisage settling issues in part . Therefore, whatever issues are there in a pending appeal are to be settled in full whether they pertain to APA/MAP adjustments or otherwise. Taxes Raid before filling Declaration 56. Whether credit for earlier taxes paid against disputed tax will be available against the payment to be made under DTVSV Scheme, 2024? Yes . Credit for taxes paid against the disputed tax bef o re filing declaration shall be av ..... X X X X Extracts X X X X X X X X Extracts X X X X
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