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F. No. 370142/2212024 -TPL
Government of India
Ministry of Finance
Department of Revenue
Circular No. 19 of2024
Central Board of Direct Taxes
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Dated: 16th December, 2024
Sub.: Guidance Note 2/2024 on provisions of the Direct Tax Vivad se Vis/lWas Scheme,
2024 - reg.
The Direct Tax Vivad Se Vishwas Scheme, 2024 (hereinafter referred as 'DTVSV Scheme,
2024' or 'Scheme') has been enacted vide Chapter IV of Finance (No.2) Act, 2024 to provide for
dispute resolution in respect of pending income tax litigation. The objective of the Scheme is to,
inter alia, reduce pending income tax litigation, generate timely revenue for the Government and
benefit taxpayers by providing them peace of mind, certainty and savings on account of time and
resources that would otherwise be spent on the long-drawn and vexatious litigation process.
2.
The commencement date of the said Scheme has already been notified as 1.10.2024. Further,
Rules and Forms for enabling the Scheme have also been notified on 20.09.2024. After enactment
of the DTVSV Scheme, 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.
Issue
Comments
No.
Elil!ibilitv of cases
36.
Suppose a taxpayer is eligible to
Yes, such cases are eligible for settlement under the
apply for DTVSV Scheme, 2024
Scheme as appeal was pending as on 22.7.2024. Disputed
as his appeal is pending as on
tax will be calculated in the same manner as if the appeal
22.7.2024.
But
subsequently,
pending on 22.7.2024 is yet to be disposed off.
before the taxpayer could file
declaration under the DTVSV
Scheme, 2024, his appeal has
been disposed off on merits or
dismissed as withdrawn for the
purposes of the Scheme. Can
such
a
taxpayer
still
file
declaration under the Scheme?
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37.
Suppose a taxpayer has filed a
declaration in Form-I. After the
declaration, the appeal has been
disposed off by the concerned
authority. Whether such a case is
eligible for settlement?
38.
Time limit for filing of appeal has
expired before 22nd July 2024 but
an appeal alongwith application
for condonation. of delay has been
filed
after
22nd
July,
2024.
Whether the taxpayer can opt for
the Scheme in such a case?
39.
Suppose an appeal has been filed
before 22nd July, 2024 with an
application for condonation of
delay which is also filed before
22nd July, 2024. This appeal has
been
admitted
by
allowing
condonation of delay prior to the
date of filing of declaration under
the Scheme. Whether such a
taxpayer can opt for the Scheme?
40.
In the case of a search action
carried
out
before
1.4.2021,
assessments of prevIous years
other than search year, have been
made under section
153A or
153C of the Income-tax Act,
1961 ('the Act'), and assessment
for the year of search has been
made under section 143(3) of the
Act.
Whether
any
of these
assessment order can be covered
under the DTVSV Scheme 2024?
41.
Whether
appeal
filed
against
intimation u/s 143(1) of the Act
and pending as on 22nd July, 2024
is eligible for DTVSV Scheme,
2024?
42.
Section 248 of the IT Act relates
to appeal by a person denying
liability to deduct tax in certain
cases. As per the provisions of
this section, no appeal can be
filed where tax is paid to the
credit of the Central government
on or after 1.4.2022. Whether
appeal filed pnor to 1.4.2022
under section 248 of the Act is
eligible for
DTVSV Scheme,
2024?
Yes, such a case is eligible for settlement.
No. Appeal has to be pending as on 22nd of July, 2024 for
a taxpayer to opt for the Scheme. Thus, where an appeal
alongwith application for condonation is filed after 22nd
July, 2024, it does not tantamount to pendency of appeal
as on 22nd July, 2024. Accordingly, such cases shall not
be eligible.
Yes. In such cases where the appeal as well as
condonation application have been filed on or before 22nd
July, 2024. On admission of condonation application,
such cases convert into an appeal pending on 22nd of July,
2024. Therefore, the taxpayer can opt for settlement
under the Scheme in such cases.
No. Such cases are specifically barred under section
96(a)(i) ofthe of the DTVSV Scheme, 2024.
Yes. Any appeal filed against intimation u/s 143( I) of the
Act and pending as on 22nd July, 2024 is eligible for
settlement under the Scheme.
Yes.
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43.
Where
information
has
been
Yes. Section 96 of the DTVSV Scheme, 2024 clearly
received
under
an
agreement
states that the Scheme shall not apply where tax arrears
referred to
In section 90 or
relate to assessment or reassessment made on the basis of
section 90A of the Act; however,
information received under section 90 or section 90A of
such information has not been
the Act. Accordingly, where information received u/s
'used' for making additions in
section 90 or section 90A has not been used for making
assessmentl reassessment order.
additions in assessment! re-assessment order, assesses can
In
such
cases,
whether
the
opt for the Scheme for such orders.
assessee can opt for DTVSV
Scheme 2024?
44.
Where
review
petitions
are
No. Pendency of review petition does not tantamount to
pending before High Courts or
pendency of an appeal. Therefore, even if a review
Supreme Courts, whether those
petition is pending as on 22'd July, 2024, it will not
cases be eligible for settlement
amount to pendency of an appeal.
under DTVSV Scheme, 2024?
45.
Whether DTVSV Scheme, 2024
No
can be availed in a case where
proceedings are pending before
Income
Tax
Settlement
Commission (ITSC) or where
writ has been filed against the
order ofITSC?
46.
Whether cases where the taxpayer
Yes. In such cases, where declaration/application has
or the
Department has
filed
been filed u/s l58A/ 158AAI158AB of the Act on or
declaration/application
under
before 22'd July, 2024, the taxpayer can opt for settlement
section 158AI158AAI158AB are
under the Scheme provided that if there is any appeal
eligible under DTVSV Scheme,
relating to the relevant year, it is also settled.
2024?
Set-aside ap..ill!al:
47.
Appeal has been set aside to
Refer FAQ No. 24 of Guidance Note 1/2024. It was
ITATICIT(A)/DRP
and
was
mentioned therein that-
pending on 22.07.2024. Whether,
"According to the Scheme, an appeal which is pending as
in such cases the assessee can opt
on 22. 7.2024 shall be eligible for settlement. A set-aside
for the Scheme?
matter to the AD is not an appeal pending as such.
Therefore, set-aside malters to the AD, whether fully set-
aside or partially set-aside are not covered under the
Scheme. "
However, where an appeal has been set-aside fully to
ITA TICIT(A)/DRP, such appeals will be eligible for
settlement.
Also, where an appeal has been partially set-aside to
ITATICIT(A)IDRP, all the issues which have been set-
aside will form a separate appeal and shall be eligible for
settlement as such and disputed tax will be computed as if
pending at the level to which it is set-aside.
Prosecution
48.
Where
the
prosecution
Yes. Reference may be made to section 96 of the DTVSV
proceedings have not yet been
Scheme, 2024. As per the provisions of section 96(a)(ii)
filed
before a court of law,
of the said Scheme, the Scheme shall not apply in respect
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whether the assessee is eligible
of tax arrears relating to an assessment year in respect of
for the Scheme?
which 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
is
for
a
No. Section 96(a)(ii) prohibits such cases relating to an
different assessment year and the
assessment year in respect of which prosecution has been
appeal for a different one, would
instituted on or before the date of filing of declaration.
it debar the assessee from the
Thus, prosecution in one assessment year does not debar
benefit of this scheme?
the assessee from filing declaration for any other
assessment year, if it is otherwise eligible.
ComDutation of Amount Davable
50.
The
DTVSV
Scheme,
2024
Reference may be made to the provisions of the Scheme
provides for the different rates
read with DTVSV Rules, 2024. As per Rule 3 of the
where declaration is fi led on or
DTVSV Rules, 2024, the amount payable is linked to the
before 31.12.2024 and where it is
date of filing of declaration. Accordingly, where
filed on or after 1.1.2025. Please
declaration is filed on or before 31.12.2024, the amount
clarify
whether
payment
of
payable by the declarant shall be as mentioned in column
disputed amount is also required
(3) of the Table specified in section 90 of the Finance
to be made before 31.12.2024 for
(No.2) Act, 2024. However, where a declaration is filed
applicability ofthe lower rate?
on or after 1.1.2025, the amount payable by the declarant
shall be as mentioned in column (4) of the said Table.
The payment of disputed amount is required to be made
as per section 92(2) of the DTVSV Scheme i.e. within 15
days of the date ofrecejpt of certificate in Form No.2.
51.
Whether any additional ground
If any additional ground has been filed on or before 22nd
fi led in relation to an appeal is to
July, 2024, it shall be considered for the purpose of
be considered while computing
computing disputed tax.
disputed tax?
Dislluted PeDaltv
52.
Suppose penalty has been levied
Reference may be made to the definition of tax arrears in
after the taxpayer has filed a
section 89(1)(0) of the Scheme. Interest chargeable or
declaration for the settlement of
charged and penalty leviable or levied are included in tax
the associated quantum appeal. In
arrears. However, the settlement for quantum appeal is
such
a
case,
whether
on
made as a percentage of disputed tax, where disputed tax
settlement of tax arrears of the
means income-tax including surcharge and cess. Thus,
quantum
appeal,
penalty
In
penalty leviable or levied are not included in disputed tax
relation to such tax arrears would
for settlement of quantum appeal.
be waived off?
Accordingly, on settlement of quantum appeal, the
Designated Authority will grant immunity from penalty
leviable or levied in respect of tax arrears settled under
the Scheme.
53.
Suppose in a case, the additions
Penalties which are unrelated to quantum additions are
made in assessment have reached
clearly eligible for settlement where an appeal in respect
finality. There
IS no quantum
of such penalty is pending as on 22nd July, 2024. These
appeal pending as on 22nd July,
penalties are unrelated to quantum additions and therefore
2024. However, penalty appeal is
can be settled independently of quantum appeals.
pending as on 22nd July, 2024
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which relates to the additions
Further, where the additions made in an assessment have
made in the said assessment
reached finality and thus there is no quantum appeal
order. Can a penalty appeal be
pending as on 220d July, 2024, there is no disputed
settled independent of quantum
income or disputed tax as on the specified date i.e. 220d
appeal?
July, 2024. Therefore, such penalty can be settled
separately under the Scheme as per SI. No. (c) & (d) of
the Table in section 90 of the Scheme.
54.
Whether appeal against penalties
No, appeal against such penalty order is required to be
that are not related to quantum
settled separately.
assessment like penalty uls 271 B,
271BA, 2710A of the Act etc.
are also waived upon settlement
of appeal relating to disputed tax?
AP AIMAP cases
55.
In case of AP AlMAP, can the
The Scheme envIsages settling dispute In fu ll. The
Scheme be opted for settling
Scheme does not envisage settling issues In part.
disputes
..
pertaInIng
to
non-
Therefore, whatever issues are there in a pending appeal
APAIMAP adjustments?
are to be settled in full whether they pertain to APAIMAP
adjustments or otherwise.
Taxes Raid before fiJin!! Declaration
56.
Whether credit for earlier taxes
Yes. Credit for taxes paid against the disputed tax before
paid against disputed tax will be
filing declaration shall be available to the declarant.
available against the payment to
be made under OTVSV Scheme,
2024?
57.
In such cases where Appeal is
Yes. Reference may be made to section 94 of the OTVSV
pending as on 220d July, 2024 but
Scheme, 2024. The situation mentioned is clearly covered
disputed tax demands have been
in section 94(2) of the Scheme. Accordingly, such cases
already fully paid before filing of
shall be eligible for the Scheme.
declaration.
Are
such
cases
eligible to avail OTVSV Scheme,
2024?
TDS related 0 ueries
58.
In such cases where deductee has
Where a deductee has settled his tax liability, the
settled his appeal, whether TOS
deductor is relieved from his liability other than interest
deductor would be relieved from
payable. However, consequential relief for expense
its liability uls 20 I (I) of the Act.
deduction uls 40(a) of the Act shall be available to such
Further, whether TOS deductor
deductor.
would
be
allowed
to
claim
expense deduction uls 40(a) of
the Act?
59.
Whether appeals fi led before the
Yes, if appeal in respect of intimation uls 200A IS
Appellate
Authority
against
pending as on 220d July, 2024.
intimation passed uls 200A of the
Act (regarding intimation on
processing of TOS returns) can
be
settled
under
OTVSV
Scheme 2024?
Page Sof6
(
Miscellaneous
60.
Whether Designated Authority
can amend his order to rectify any
patent errors?
61.
Where
appeal
is pending
in
respect of primary assessee wh ich
is a foreign entity not having
adequate business presence
In
India.
Whether
such
foreign
entity can file declaration and
settle its dispute through
its
representative
assessee
having
presence in India?
62.
If the taxpayer avails DTVSV
Scheme,
2024
for
Transfer
Pricing
adjustment,
will
provisions of section 92CE of the
Act apply separately?
Yes, the Designated Authority shall be able to amend his
order under section 92 to rectify any apparent errors.
Yes. With proper authorisation, a representative assessee
can opt for settlement under the Scheme.
Even
In the case of deceased tax-payer, the legal
representative may also opt for settlement under the
Scheme.
Yes, secondary adjustment under section 92CE will be
applicable. However, it may be noted that the provision of
secondary adjustment as contained in section 92CE of the
Act is not applicable for primary adjustment made in
respect of an assessment year commencing on or before
the 1 st day of April 2016. That means, if there is any
primary adjustment for assessment year 20 16-17 or
earlier assessment year, it is not subjected to secondary
adjustment under section 92CE of the Act.
~ ';-~1A1
(Surbendu Thakur)
Under Secretary to the Govt. oflndia
Copy to:
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6. The C&AG of India
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