{"id":929,"date":"2021-01-06T05:46:02","date_gmt":"2021-01-06T05:46:02","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=929"},"modified":"2021-01-06T05:47:21","modified_gmt":"2021-01-06T05:47:21","slug":"new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/","title":{"rendered":"New FAQs Issued By CBDT On Vivad Se Vishwas Scheme 2020: Key Highlights"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently, the apex body CBDT (Central Board of Direct Taxes) has issued a Circular No 21\/ 2020, dated 04.12.2020, regarding the FAQs and Clarifications on some vital and crucial issues in the New FAQs Issued By CBDT On Vivad Se Vishwas Scheme 2020<\/p>\n\n\n\n<p>Further,\nit shall be relevant to state that the said FAQs are in continuance to the\nearlier Circular No 9\/ 2020, issued on 22.04.2020, containing questions 1 to\n55. Furthermore, this circular contains question from 56 to 89.<\/p>\n\n\n\n<p>Also, it needs to be taken into consideration that the due date prescribed by CBDT for <strong><a href=\"https:\/\/swaritadvisors.com\/income-tax-return-filing\" class=\"text-primary\">filing of income tax returns<\/a><\/strong> or tax disputes under the Vivad se Vishwas Scheme 2020 as 31.12.2020 and the declarants can pay the amount of disputed tax without any penalty or the additional amount by 31.03.2021.<\/p>\n\n\n\n<p>In this blog, we will deal with the key highlights of the New FAQs issued by CBDT on Vivad se Vishwas Scheme 2020.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3abecab4354\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3abecab4354\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Key_Highlights_of_the_New_FAQs_Issued_by_CBDT_on_Vivad_Se_Vishwas_Scheme\" title=\"Key Highlights of the New FAQs\nIssued by CBDT on Vivad Se Vishwas Scheme\">Key Highlights of the New FAQs\nIssued by CBDT on Vivad Se Vishwas Scheme<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Eligibility_of_the_Appeal_filed_beyond_the_cut_off_date_of_31012020\" title=\"Eligibility of the Appeal filed beyond the cut off date of 31.01.2020\">Eligibility of the Appeal filed beyond the cut off date of 31.01.2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Eligibility_of_the_Appeal_filed_prior_to_the_cut_off_date_of_31012020\" title=\"Eligibility of the Appeal filed prior to the cut off date of 31.01.2020\">Eligibility of the Appeal filed prior to the cut off date of 31.01.2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Effect_of_the_Enhancement_Notice_issued_by_CITAppeals_after_the_cut_off_date_of_31012020\" title=\"Effect of the Enhancement Notice issued by CIT(Appeals) after the cut off date of 31.01.2020\">Effect of the Enhancement Notice issued by CIT(Appeals) after the cut off date of 31.01.2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Eligibility_of_the_Assessment_Orderframed_under_section_143_3\" title=\"Eligibility of the Assessment Orderframed under section 143 (3)\">Eligibility of the Assessment Orderframed under section 143 (3)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Eligibility_of_the_Appeal_filed_against_an_intimation_under_section_1431\" title=\"Eligibility of the Appeal filed against an intimation under section 143(1)\">Eligibility of the Appeal filed against an intimation under section 143(1)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Eligibility_of_the_Appeal_against_the_Orders_denying_Registration_to_Trusts_under_section_12AA\" title=\"Eligibility of the Appeal against the Orders denying Registration to Trusts under section 12AA\">Eligibility of the Appeal against the Orders denying Registration to Trusts under section 12AA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Eligibility_of_the_Appeal_or_Writ_filed_against_the_Order_under_section_263\" title=\"Eligibility of the Appeal or Writ filed against the Order under section 263\">Eligibility of the Appeal or Writ filed against the Order under section 263<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Eligibility_of_Cross_Objections_filed_as_on_31012020\" title=\"Eligibility of Cross Objections filed as on 31.01.2020\">Eligibility of Cross Objections filed as on 31.01.2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Eligibility_of_the_Cases_where_Proceedings_are_pending\" title=\"Eligibility of the Cases where Proceedings are pending&nbsp;\">Eligibility of the Cases where Proceedings are pending&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Subsequent_Treatment_of_Additions_under_section_68\" title=\"Subsequent Treatment of Additions under section 68\">Subsequent Treatment of Additions under section 68<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#If_the_appeal_involves_an_issue_of_disallowance_under_section_40aiia_of_the_Income_Tax_Act\" title=\"If the appeal involves an issue of disallowance under section 40(a)(i)\/(ia) of the Income Tax Act&nbsp;\">If the appeal involves an issue of disallowance under section 40(a)(i)\/(ia) of the Income Tax Act&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Treatment_of_Interest_levied_under_section_2011A_of_the_Income_Tax_Act\" title=\"Treatment of Interest levied under section 201(1A) of the Income Tax Act\">Treatment of Interest levied under section 201(1A) of the Income Tax Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Manner_of_Apportionment_of_the_Prepaid_Taxes\" title=\"Manner of Apportionment of the Prepaid Taxes\">Manner of Apportionment of the Prepaid Taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Possibility_of_Revision_of_the_Declaration_Form_1_after_its_Filing\" title=\"Possibility of Revision of the Declaration Form 1 after its Filing\">Possibility of Revision of the Declaration Form 1 after its Filing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/blog\/new-faqs-issued-by-cbdt-on-vivad-se-vishwas-scheme-2020\/#Copy_of_the_Official_Notification\" title=\"Copy of the Official Notification\">Copy of the Official Notification<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Highlights_of_the_New_FAQs_Issued_by_CBDT_on_Vivad_Se_Vishwas_Scheme\"><\/span>Key Highlights of the New FAQs\nIssued by CBDT on Vivad Se Vishwas Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key highlights of the new FAQs issued by CBDT on Vivad se Vishwas Scheme 2020 are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Key-Highlights-of-the-New-FAQs-Issued-by-CBDT-on-Vivad-Se-Vishwas-Scheme-heading-1.png\" alt=\"Key Highlights CBDT on Vivad Se Vishwas Scheme\" class=\"wp-image-932\" width=\"785\" height=\"556\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Key-Highlights-of-the-New-FAQs-Issued-by-CBDT-on-Vivad-Se-Vishwas-Scheme-heading-1.png 900w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Key-Highlights-of-the-New-FAQs-Issued-by-CBDT-on-Vivad-Se-Vishwas-Scheme-heading-1-300x213.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Key-Highlights-of-the-New-FAQs-Issued-by-CBDT-on-Vivad-Se-Vishwas-Scheme-heading-1-768x544.png 768w\" sizes=\"(max-width: 785px) 100vw, 785px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_of_the_Appeal_filed_beyond_the_cut_off_date_of_31012020\"><\/span>Eligibility of the Appeal filed beyond the cut off date of 31.01.2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It has\nbeen clarified by CBDT in its Circular that if the time period for filing an\nappeal has expired during the tenure of 01.04.2019 to 31.01.2020, (including\nboth the dates), and the application for the condonation of delay is furnished\nbefore 04.12.2020, starting from the date of issuing of CBDT Circular, and the\nappeal is admitted by the respective appellate authority prior to the date of\nfiling of declaration (the last date for declaration form 1 is 31.12.2020),\nthen, in that case, such an appeal will be considered to be pending as on\n31.01.2020, and the same will be eligible under the provisions of the Vivad se\nVishwas Scheme 2020.<\/p>\n\n\n\n<p>However,\nin the case, where the appeal filed is beyond the cut off date of 31.01.2020,\nwith the condonation of delay application, but the same has not been admitted\nor rejected by the concerned appellate authority, then, in that case, the same\nwill not be eligible under the provisions of the Vivad se Vishwas Scheme 2020.\nFurther, the same will apply in the case where such condonation application has\nbeen duly approved by the appellate authority after 31.12.2020.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_of_the_Appeal_filed_prior_to_the_cut_off_date_of_31012020\"><\/span>Eligibility of the Appeal filed prior to the cut off date of 31.01.2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It has been explained by the <strong>CBDT<sup><a href=\"https:\/\/www.incometaxindia.gov.in\/pages\/about-us\/central-board-of-direct-taxation.aspx\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> <\/strong>(Central Board of Direct Taxes) in the circular that where an appeal has been furnished before the cut off date, i.e., 31.01.2020, but the same has been disposed of by the respective appellate authority, against the assessee after 31.01.2020, then, in that case, the same will be eligible as well under the Scheme. Further, the disputed tax payable under the said scheme will be calculated with reference to the position of the appeal on 31.01.2020<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Effect_of_the_Enhancement_Notice_issued_by_CITAppeals_after_the_cut_off_date_of_31012020\"><\/span>Effect of the Enhancement Notice issued by CIT(Appeals) after the cut off date of 31.01.2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In case the CIT (Appeals) issues the Enhancement Notice after the cut off date of 31.1.2020, but prior to the date of issuance of the&nbsp;<strong>CBDT Circular, i.e.,04.12.2020<\/strong>, then, in that case, the same shall be required for determining the disputed tax payable under the provisions of the CBDT on Vivad se Vishwas Scheme 2020.<\/p>\n\n\n\n<p>However,\nto ensure fair play and justice to all the assessees, CBDT has further provided\nthat if the Enhancement Notice is issued on or after the date of issuance of\nCircular, i.e.,04.12.2020, then, in that case, the same will not be taken into\naccount for calculating the disputed tax payable under the provisions of the Scheme.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_of_the_Assessment_Orderframed_under_section_143_3\"><\/span>Eligibility of the Assessment Orderframed under section 143 (3)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has clarified in its circular that\nsuch a case will be considered as \u201cSearch Case\u201d and consequently the set\nthreshold limit of Rs 5 crores of the disputed tax payable will apply.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_of_the_Appeal_filed_against_an_intimation_under_section_1431\"><\/span>Eligibility of the Appeal filed against an intimation under section 143(1)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has\nclarified in its circular that if an appeal has been filed against intimation\nunder section 143(1) of the Income Tax Act, then, in that case, the same will\nbe eligible under the Scheme only if the adjustment has been made under sub\nclauses (iii) to (vi) of the clause (a) of section 143(1) of the Act.<\/p>\n\n\n\n<p>Further,\nthe adjustments made under these subclauses are as follows:<\/p>\n\n\n\n<p>(<em>iii<\/em>)&nbsp;Disallowance of the loss\nclaimed if in case the return of the previous year for which the set off of\nloss is demanded was furnished beyond the date specified under 139 (1); <\/p>\n\n\n\n<p>(<em>iv<\/em>)&nbsp;Disallowance of the expenditure\nspecified in the audit report, but the same has not been taken into account for\ncomputing the total income;<\/p>\n\n\n\n<p>(<em>v<\/em>)&nbsp;Disallowance of the\ndeduction claimed under&nbsp;various sections, such as 10AA,&nbsp;80\nIA,&nbsp;80 IAB,&nbsp;80 IB,&nbsp;80 IC,&nbsp;80 ID&nbsp;or&nbsp;section 80 IE,\nif the said return is furnished beyond the date specified under section 139 (1);\nor<\/p>\n\n\n\n<p>(<em>vi<\/em>)&nbsp; Addition of the income\nshown in Form 16 A or Form 26 AS or Form 16, if the same has not been included\nwhile calculating the total income in the return;<\/p>\n\n\n\n<p>However,\nthe adjustments made under sub clauses (i) and (ii) of the clause (a) of\nsection 143 (1) of the Act, are not qualified to be settled under the\nprovisions of the Scheme. <\/p>\n\n\n\n<p>The\nadjustments made under these sub clauses are as follows:<\/p>\n\n\n\n<p>&nbsp;(<em>i<\/em>)&nbsp; Any arithmetical error in\nthe Income Tax Return;<\/p>\n\n\n\n<p>&nbsp;(<em>ii<\/em>)&nbsp;An incorrect claim, if the\nsame is apparent from any information or detail furnished in the return.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_of_the_Appeal_against_the_Orders_denying_Registration_to_Trusts_under_section_12AA\"><\/span>Eligibility of the Appeal against the Orders denying Registration to Trusts under section 12AA<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has clarified in its circular that if an appeal filed against the order denying the Registration to Trusts under section 12AA is not qualified to be settled under the provisions of the Vivad se Vishwas Scheme 2020. <\/p>\n\n\n\n<p>Further, the most appropriate reason for\nthe said ineligibility will be the lack of probability of quantification of the\ndisputed tax payable under these cases.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_of_the_Appeal_or_Writ_filed_against_the_Order_under_section_263\"><\/span>Eligibility of the Appeal or Writ filed against the Order under section 263<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has\nclarified in its circular that if an order passed under section 263 of the\nIncome Tax Act 1961 contains only the general directions and the income is not\nquantifiable, then, in that case, the appeal filed against such order will not be\neligible under the provisions of the Vivad se Vishwas Scheme 2020. <\/p>\n\n\n\n<p>Further,\nin such cases, the assessee needs to settle all the issues mentioned in the\norder, as well as the issues pending in the appeal as on 31.01.2020, with\nregard to the said order.<\/p>\n\n\n\n<p>On the\nother hand, if the order passed under section 263 contains specific directions\nand the income is quantifiable as well, then, in that case, the appeal filed\nagainst such order will be eligible under the Scheme.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_of_Cross_Objections_filed_as_on_31012020\"><\/span>Eligibility of Cross Objections filed as on 31.01.2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has clarified in its circular that all the Cross Objections filed as on 31.01.2020 are eligible as well to be settled under the FAQs issued by CBDT on Vivad se Vishwas Scheme 2020. However, it shall be pertinent to note that the main appeal also needs to be settled, together with the cross objections.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_of_the_Cases_where_Proceedings_are_pending\"><\/span>Eligibility of the Cases where Proceedings are pending&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT\nhas clarified in its circular that cases where the proceeding is pending before\nthe IT settlement commission or a writ petition have been filed against the\norder passed by the settlement commission are not qualified to be settled under\nthe Scheme.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Subsequent_Treatment_of_Additions_under_section_68\"><\/span>Subsequent Treatment of Additions under section 68<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has clarified in its circular that the Scheme is not a \u201cTax Amnesty Scheme\u201d.Therefore, the assessees cannot pass entries in their Books of Accounts by crediting the unsecured loans\/share capital\/share premium in the Capital Reserve Account.<\/p>\n\n\n\n<p><strong>Also, the assessees need to credit such unsecured loans\/share premiums\/share capital as income in their \u201cRevenue Account\u201d.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"If_the_appeal_involves_an_issue_of_disallowance_under_section_40aiia_of_the_Income_Tax_Act\"><\/span>If the appeal involves an issue of disallowance under section 40(a)(i)\/(ia) of the Income Tax Act&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has clarified in its circular that no consequential relief&nbsp;will be available in case the proceedings are pending under section 201 of the Income Tax Act.<\/p>\n\n\n\n<p>However, Question No 31 of the earlier&nbsp;<strong>CBDT Circular No 9\/2020, issued on 22.04.2020<\/strong>, clearly provided that where an assessee settles his\/her TDS (Tax Deducted at Source) liability as a deductor of TDS under the Scheme, then, in that case, he\/she will acquire consequential relief regarding the expenditure disallowance under section 40(a)(i)\/ (ia).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Treatment_of_Interest_levied_under_section_2011A_of_the_Income_Tax_Act\"><\/span>Treatment of Interest levied under section 201(1A) of the Income Tax Act<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has clarified in its circular that once an appeal against the order passed under section 201(1) is settled under the Vivad se Vishwas scheme, then, in that case, there will be 100% waiver of the corresponding interest levied under section 201(1A) of the Income Tax Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Manner_of_Apportionment_of_the_Prepaid_Taxes\"><\/span>Manner of Apportionment of the Prepaid Taxes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has clarified in its circular that if the prepaid taxes, such as TDS (Tax Deducted at Source)\/TCS (Tax Collected at Source)\/ Advance Tax are clearly recognizable with the respective source of income, then, these taxed will be adjusted against the tax liability with reference to such income. <\/p>\n\n\n\n<p>Further, the remaining prepaid taxes, which cannot be clearly determined with the source of income, then, in that case, the same will be apportioned against the leftover tax liability, i.e., the undisputed tax liability and the disputed tax liability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Possibility_of_Revision_of_the_Declaration_Form_1_after_its_Filing\"><\/span>Possibility of Revision of the Declaration Form 1 after its Filing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CBDT has clarified in its circular that the Declaration filed in Form 1 can be revised and modified at any number of times by the taxpayer, prior to the issuance of the certificate of final tax by the Designated Authority, i.e., the PCCIT. Further, the certificate issued provides the final amount of tax payable under the Vivad se Vishwas scheme 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the beauty of the Vivad se Vishwas Scheme is that the taxpayer needs to pay the only disputed tax and can obtain relief from the penalty, prosecution, and interest. <\/p>\n\n\n\n<p>Usually, penalty and\ninterest exceed the tax payable, and therefore, it becomes tough and\nmultifaceted for the taxpayer to pay the full amount. This Scheme is thus\nbeneficial for all those tax payers who do not wish to litigate or where the\namount of tax in question is very less than the tax interest and penalty\nimposed. <\/p>\n\n\n\n<p>However, if in case a high amount of tax is involved and the tax payer faces liquidity crisis, then, in that case, it may not be possible for him\/her to opt the VsV Scheme. Moreover, the said scheme is not beneficial if in case there are high chances for the taxpayer to win particular tax litigation.<\/p>\n\n\n\n<p>Lastly, in case of any other doubt and perplexity, reach out to SwaritAdvisors, our tax experts will cater to all your needs and concerns.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/vivad-se-vishwas-scheme-2020\/\">Vivad Se Vishwas Scheme 2020: Concept and Features Involved<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Copy_of_the_Official_Notification\"><\/span>Copy of the Official Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/vivad-se-vishwas-scheme-2020-1-1.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">vivad-se-vishwas-scheme-2020-1-1<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the apex body CBDT (Central Board of Direct Taxes) has issued a Circular No 21\/ 2020, dated 04.12.2020, regarding the FAQs and Clarifications on some vital and crucial issues in the New FAQs Issued By CBDT On Vivad Se Vishwas Scheme 2020 Further, it shall be relevant to state that the said FAQs are [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":930,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50],"tags":[147],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/929"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=929"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/929\/revisions"}],"predecessor-version":[{"id":936,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/929\/revisions\/936"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/930"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}