Direct Tax Dispute Resolution Scheme 2016 key features

By | June 1, 2016

Books on Direct Tax Dispute Resolution Scheme 2016


The Direct Tax Dispute Resolution Scheme 2016

Direct Tax Dispute Resolution Scheme 2016

Key features of Direct Tax Dispute Resolution Scheme 2016

  • CHAPTER X of Finance Act 2016 covers The Direct Tax Dispute Resolution Scheme 2016
  • The Direct Tax Dispute Resolution Scheme 2016 shall open from w.e.f 01.06.2016
  • A person may make a declaration to the designated authority in respect of tax arrear or specified tax under the Direct Tax Dispute Resolution Scheme, 2016 on or before 31st day of December, 2016
  • The amount payable under The Direct Tax Dispute Resolution Scheme 2016 by the declarant shall be as under, namely:––

    (I) in case of pending appeal related to tax arrear being––

    (a) tax and interest,

    (i) in a case where the disputed tax does not exceed ten lakh rupees, the whole of the disputed tax and the interest on disputed tax till the date of assessment or reassessment, as the case may be; or
    (ii) in any other case, the whole of disputed tax, twenty-five per cent. of the minimum penalty leviable and the interest on disputed tax till the date of assessment or reassessment, as the case may be;

    (b) penalty, twenty-five per cent. of the minimum penalty leviable and the tax and interest payable on the total income finally determined.

    (II) in case of specified tax, the amount of such tax so determined.

‘specified tax’’ means a tax—

(i) the determination of which is in consequence of or validated by any amendment made to the Income-tax Act or the Wealth-tax Act with retrospective effect and relates to a period prior to the date on which the Act amending the Income-tax Act or the Wealth-tax Act, as the case may be, received the assent of the President; and

(ii) a dispute in respect of such tax is pending as on the 29th day of February, 2016;

  • Where the declaration is in respect of tax arrear, consequent to such declaration, appeal in respect of the disputed income, disputed wealth and tax arrear pending before the Commissioner of Income-tax (Appeals) or the Commissioner of Wealth-tax (Appeals), as the case may be, shall be deemed to have been withdrawn.
  • Where the declaration is in respect of specified tax and the declarant has,—

    (a) filed any appeal before the Commissioner of Income-tax (Appeals) or the Commissioner of Wealth-tax (Appeals) or the Appellate Tribunal or the High Court or the Supreme Court or any writ petition before the High Court or the Supreme Court against any order in respect of the specified tax, he shall withdraw such appeal or writ petition with the leave of the court wherever required and furnish proof of such withdrawal along with the declaration

    (b) initiated any proceeding for arbitration, conciliation or mediation or has given any notice thereof under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India whether for protection of investment or otherwise, he shall withdraw such notice or the claim, if any, in such proceedings prior to making the declaration and furnish proof thereof along with the declaration.

  • The declaration under The Direct Tax Dispute Resolution Scheme 2016  shall be made in duplicate in Form-1 (To see forms read Direct Tax Dispute Resolution Scheme Rules 2016 Notified )
  • Undertaking under The Direct Tax Dispute Resolution Scheme 2016  in Form-2 regarding the voluntary waiver of all rights regarding the specified tax i.e waiving his right, whether direct or indirect, to seek or pursue any remedy or any claim in relation to the specified tax which may otherwise be available to him under any law for the time being in force (To see forms read Direct Tax Dispute Resolution Scheme Rules 2016 Notified )
  • The designated authority shall, within a period of sixty days from the date of receipt of the declaration, determine the amount payable by the declarant in accordance with the provisions of this Scheme and grant a certificate.
  • Certificate to be issued regarding full and final settlement of tax / arrear/ specified tax by the designated authority in Form No 3 (To see forms read Direct Tax Dispute Resolution Scheme Rules 2016 Notified )
  • After certificate issued by the designated authority in Form 3, the detail of payments alongwith proof thereof, shall be furnished by the declarant within 30 days of the date of receipt of certificate to the designated authority in Form-4.
  • Designated authority shall pass order
  • Where,—

    (a) any material particular furnished in the declaration is found to be false at any stage; or

    (b) the declarant violates any of the conditions referred to in this Scheme

    (c) the declarant acts in a manner which is not in accordance with the undertaking given by him under sub-section (4),

    It shall be presumed as if the declaration was never made under the Scheme and all the consequences under the Income-tax Act or the Wealth- tax Act, as the case may be, under which the proceedings against the declarant are or were pending, shall be deemed to have been revived.

  • Immunity under The Direct Tax Dispute Resolution Scheme 2016

(a) immunity from instituting any proceedings in respect of an offence under the Income-tax Act  or the Wealth-tax Act, as the case may be; or,

(b) immunity from imposition or waiver, as the case may be, of penalty under the Income-tax Act or the Wealth-tax Act, as the case may be, in respect of,—

(i) specified tax covered in the declaration under section 199; or

(ii) tax arrear covered in the declaration to the extent the penalty exceeds the amount of penalty referred to in clause (j) of section 199;

(c) waiver of interest under the Income-tax Act or the Wealth-tax Act, as the case may be, in respect of,—

(i) specified tax covered in the declaration under the section 199;

(ii) tax arrear covered in the declaration to the extent the interest exceeds the amount of interest referred to in sub-clause (a) of clause (I) of section 199.

  • No refund of amount paid under The Direct Tax Dispute Resolution Scheme 2016
  • No  benefit, concession or immunity on the declarant in any proceedings other than those in relation to which the declaration has been made under The Direct Tax Dispute Resolution Scheme 2016
  • The Direct Tax Dispute Resolution Scheme 2016 shall not to apply following cases

    (a) in respect of tax arrear or specified tax,––

    (i) relating to an assessment year in respect of which an assessment has been made under section 153A or 153C of the Income-tax Act or assessment or reassessment for any of the assessment years, in consequence of a search initiated under section 37A or requisition made under section 37B of the Wealth-tax Act if it relates to any tax arrear;
    (ii) relating to an assessment or reassessment in respect of which a survey conducted under section 133A of the Income-tax Act or section 38A of the Wealth-tax Act, has a bearing if it relates to any tax arrear;
    (iii) relating to an assessment year in respect of which prosecution has been instituted on or before the date of filing of declaration under section 199;
    (iv) relating to any undisclosed income from a source located outside India or undisclosed asset located outside India;
    (v) relating to an assessment or reassessment made on the basis of information received under an agreement referred to in section 90 or section 90A of the Income-tax Act, if it relates to any tax arrear;

    (b) to any person in respect of whom an order of detention has been made under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974:

    Provided that—

    (i) such order of detention, being an order to which the provisions of section 9 or section 12A of the said Act do not apply, has not been revoked on the report of the Advisory Board under section 8 of the said Act or before the receipt of the report of the Advisory Board; or
    (ii) such order of detention, being an order to which the provisions of section 9 of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the review under sub-section (3) of section 9, or on the report of the Advisory Board under section 8, read with sub-section (2) of section 9, of the said Act; or
    (iii) such order of detention, being an order to which the provisions of section 12A of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the first review under sub-section (3) of that section, or on the basis of the report of the Advisory Board under section 8, read with sub-section (6) of section 12A, of the said Act; or
    (iv) such order of detention has not been set aside by a court of competent jurisdiction;

    (c) to any person in respect of whom prosecution for any offence punishable under theprovisions of the Indian Penal Code, the Unlawful Activities (Prevention) Act, 1967, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Prevention of Corruption Act, 1988 or for the purpose of enforcement of any civil liability has been instituted on or before the filing of the declaration or such person has been convicted of any such offence punishable under any of those Acts;

    (d) to any person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992.

  1. Last date for Direct Tax Dispute Resolution Scheme 2016 notified
  2. Direct Tax Dispute Resolution Scheme Rules 2016 Notified
  3. DIRECT TAX DISPUTE RESOLUTION SCHEME 2016
  4. Rules and forms for Direct Tax Dispute Resolution Scheme and Equalisation Levy notified
  5. THE INDIRECT TAX DISPUTE RESOLUTION SCHEME 2016
  6. Income Declaration Scheme 2016 analysis
  7. INCOME DECLARATION SCHEME 2016
  8. Income Declaration Scheme Rules 2016
  9. Jurisdiction for making declaration under Income Declaration Scheme 2016
  10. Income Declaration 2016 , Declaration & Tax Payment Date Notified
  11. Income Declaration Scheme 2016 Explanatory notes
  12. FAQ’s on Income Declaration Scheme 2016
  13. FAQs relating to The Income Declaration Scheme 2016 uploaded

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