Q.1 Who are going to be benefitted from this scheme?
Ans. Every person, to whom demand is raised and who has filed the appeal before the CIT(A), High Court or Supreme Court and such appeal is pending on 31st Jan 2020.
Q.2 When is this scheme going to be implemented and what is the last date to opt for scheme.
Ans. As of date, the scheme is in the form of Bill only which is pending for President consent. As soon as it gets the consent of President, it will come into force from that day. Regarding last date, government is yet to notify that date, but the scheme is divided into two parts, one who opts for the scheme before 31st March 2020 will be given some benefit in preference of those who opted the scheme after 31st March 2020.
Q.3 What will be the amount of tax that a person have to pay after opting for the scheme?
Ans. As represented in above answer, the scheme is divided into two parts as follows
|S.No.||Nature of Tax Arrear||Option 1 – If person opts the scheme on or before 31st March 2020||Option 2 – If person opts the scheme after 31st March 2020|
|1||Where demand pertains to disputed tax, interest & penalty||Amount of disputed tax needs to be paid||110% of the amount of disputed tax|
|2||Where demand pertains to disputed interest, penalty & fees||25% of disputed interest, penalty, fees||30% of disputed interest, penalty, fees|
Q.4 Whether a person can go for any other alternative if he/she has not benefitted by the scheme.
Ans. Once an order has been passed by the authority in this scheme, no person can opt for any other alternative either with help of any appellate forum, arbitrator, conciliator or mediator.
Q.5 What will be the time limit to pay the tax after opting for scheme. Is there any instalment benefit that will be provided to pay the disputed tax?
Ans. Once a declaration to opt for the scheme has been filed, proper officer shall within 15 days from the date of receipt of declaration determine the amount payable under this scheme and issue a certificate to declarant. After receiving of certificate, declarant have to pay the amount within next 15 days. There is no instalment option notified in the scheme yet, but department may based on the volume of tax amount grant an instalment scheme on the request of declarant.
Q.6 Who cannot enjoy the benefit of scheme?
Ans. The following person shall not be eligible to opt for the scheme –
Q.7 What will be the amount of disputed tax where the assessment has effect of reducing the loss and there is no such tax liability that needs to be paid?
Ans. In such a case, disputed tax shall be calculated on the amount of income that has been added back to the loss of the assessee or that amount of expense that has been disallowed while computing loss of the assessee.