As per the bill, the scheme is applicable to: the appeals filed by taxpayers or the Government, which are pending with the Commissioner (Appeals), Income tax Appellate Tribunal, High Court or Supreme Court as on the 31st day of January, 2020 irrespective of whether tax demand in such cases is pending or has been paid; The pending appeal may be against disputed tax, interest or penalty in relation to an assessment or reassessment order or against disputed interest, disputed fees where there is no disputed tax.
According to the bill containing scheme details, the designated authority, within a period of 15 days from the date of receipt of the declaration will determine the amount payable by the declarant (taxpayer) in accordance with the provisions of this Act (the scheme) and grant a certificate to the declarant containing particulars of the tax arrears and the amount payable after such determination, in such form as may be prescribed.
The taxpayer would be required to pay the amount determined by the designated authority within 15 days of the date of receipt of the certificate and intimate the details of such payment to the designated authority in the prescribed form and there upon the designated authority shall pass an order stating that, the declarant has paid the amount.
The scheme details mention that once the taxpayer avails to resolve the dispute with the tax authority under this scheme then the amount payable, shall be considered final and such cases will not be reopened in any other proceeding under the Income-tax Act. The designated authority shall not institute any proceeding in respect of an offence; or impose or levy any penalty; or charge any interest under the Income-tax Act in respect of tax arrears.
Scheme may not be applicable in following Cases:
- Relating to an assessment year in respect of which an assessment has been made under section 153A or section 153C of the Income-tax Act, if it relates to any tax arrear;
- Relating to an assessment year in respect of which prosecution has been instituted on or before the date of filing of declaration;
- Relating to an appeal before the Commissioner (Appeals) in respect of which notice of enhancement under section 251 of the Income-tax Act has been issued on or before the specified date;
- 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 on or before the filing of declaration.
- Relating to any undisclosed income from a source located outside India or undisclosed asset located outside India;
6. 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;