1.

S.87: Definitions

87(a). “Declarant” means a person making a declaration under section 88.

87(b). “Designated authority” means – (i) where the tax arrear is under any direct enactment an officer, not below the rank of Commissioner of Income-tax and notified by the Chief Commissioner for the purposes of this scheme.

87(e). “Disputed income” , in relation to an assessment year, means the whole or so much of the total income as is relatable to the disputed tax.

S. 201: Definitions.

201(a). “Declarant” means a person making declaration under section 202.

S.201(b). “Designated authority” means an officer not below the rank of Commissioner of Income-tax and notified by the Principal Commissioner for the purposes of this Scheme.

201(c). “Disputed income” in relation to an assessment year, means the whole or so much of the total income as is relatable to the disputed tax.

87(f). “Disputed tax” means total tax determined and payable, in respect of assessment year under any direct tax enactment but which remains unpaid as on the date of making declaration under section 88.

87(g). “Disputed wealth” in relation to an assessment year, means the whole or so much of the net wealth as is relatable to the disputed tax;

201(d). “Disputed tax” means the tax determined under the Income-tax Act, or the Wealth-tax Act, which is disputed by the assessee or the declarant, as the case may be;

201( e ). “Disputed wealth” in relation to an assessment year, means the whole or so much of the net wealth as is relatable to the disputed tax.

87(h). “Direct tax enactment” means the Wealth-tax Act, 1957 (27 of 1957), or the Gift-tax Act, 1958 (18 of 1958), or the Income-tax Act, 1961 (43 of 1961), or the Interest-tax Act, 1974 (45 of 1974) or the Expenditure-tax Act, 1987 (35 of 1986).

201(f). “Income-tax Act” means the Income –tax Act, 1961 (43 of 1961).

“87(h). ”direct tax enactment” means the Wealth Tax Act, 1957 (27 of 1957) or the Git Tax Act, 1958 (18 of 1958), or the Income – tax Act, 1961(43 of 1961) or the Interest-tax Act,1974 (45 of 1974), or the Expenditure – tax Act, 1987 (35 of 1987)

201(g) “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 of February, 2016

87(j) Deals with the “indirect tax enactment”

Separate Chapter for Indirect enactment.

87(m). “Tax arrears” means in relation to direct tax enactment, amount of tax, penalty or interest determined on or before 03/03/1998, under that enactment in respect of an assessment year modified in consequence of giving effect to an appellate order but remaining unpaid on the date of declaration.

87(h). “Direct tax enactment” means the Wealth Tax Act, 1957 (27 of 1957)

87(n). Undefined terms expression of Direct tax enactments will apply.

87(m). “Tax arrear” means-

(i) In relation to direct tax enactment, the amount of tax, penalty or interest determined on or before the 31 st day of March, 1998 under the enactment in respect to an appellate order but reaming unpaid on the date of declaration:.

201(h). “Tax arrear” means, the amount of tax, interest or penalty determined under the Income-tax Act or the Wealth-tax Act, in respect of which appeal is pending before the Commissioner of Income-tax (Appeals) or the Commissioner of Wealth-tax (Appeals) as on the 29th day of February, 2016;

201(i): “Wealth-tax Act” means the Wealth-tax Act, 1957 (27 of 1957)

201(2): All other words and expressions which are not defined the provisions of the Income –tax Act, or the Wealth-tax Act will apply.

2.

88. Settlement of tax payable.

88(a) : Where tax arrear is payable under the Income-tax Act,1961 (43 of 1961) –

202. Declaration of tax payable.

202(i). In case of pending appeal related to tax arrear being

(i) In the case of a declarant being a company or firm at the rate of 35% of disputed income;

(ii) In the case of a declarant being a person other than the company or firm at the rate of 30% of disputed income.;

(iii) In case tax arrear includes the income-tax, interest payable or penalty levied at the rate of 35% of disputed income for the persons referred to in clause (i) or thirty per cent of the disputed income for the persons referred to in clause (ii); .

(iv) in case tax arrears comprises only interest payable or penalty levied, at the rate of fifty per cent of the tax arrear;.

(v) Where tax arrear includes tax interest or penalty determined on the basis of search and seizure u/ss. 132 & 132A, for company or firm at the rate of 45% of disputed income. Other than company or firm then at the rate of 40%,

Tax arrears payable under Wealth Tax Act, then 1% of the disputed wealth.

Tax arrears include wealth tax, interest or penalty then at the rate of 1% of disputed wealth.

In case tax arrears includes only interest payable, or penalty levied then at the rate of 50% of tax arrears.

(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 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 the 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.

In case of specified tax, the amount of such tax so determined.

3.

89: Particulars to be furnished in declaration: In Form and shall be verified in such a manner as may be prescribed.

203. Particulars to be furnished : Declaration is in respect of tax arrears, consequent to such declaration, appeal in respect of the disputed income, disputed wealth and tax arrears 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.

Declaration is in respect of specified tax and the declarant has 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 referred to in sub-section (1).

4.

90: Time and manner of payment of tax arrears:

Within sixty days from the date of receipts of declaration, the designated authority shall, by order, determine the amount payable by the declarant in accordance with the provisions of scheme and grant certificate of tax arrears and sum payable after such determination towards full and final settlement of tax arrears. The declarant shall pay sum determined by the designated authority within thirty days of the passing of an order by designated authority.

204 : Time and manner of payment.-

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 in such form as may be prescribed, to the declarant setting forth therein the particulars of the tax arrear or the specified tax, as the case may be, and the sum payable after such determination. The declarant shall pay the sum determined by the designated authority as per the certificate granted under clause (a) of sub-section (1) within thirty days of the date of receipt of the certificate and intimate the fact of such payment to the designated authority along with proof thereof and the designated authority shall thereupon pass an order stating that the declarant has paid the sum.

5.

91: Immunity from prosecution and imposition of penalty in certain cases: grant immunity from instituting prosecution for any offence under any direct tax enactment, or indirect tax enactments, or from the imposition of penalty under any of such enactment, in respect of matters covered in the declaration u/s. 88.

205: Immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases:

(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,— specified tax covered, tax arrear covered in the declaration to the extent the penalty exceeds the amount of penalty.

(c) Waiver of interest – specified tax covered, tax arrear covered in the declaration to the extent the penalty exceeds the amount of penalty.

6.

92 : Appellate Authority not to proceed in certain cases:

Relating to disputed chargeable expenditure, disputed chargeable interest, disputed income, disputed wealth, disputed value of gift or tax arrears specified in section. In case appeal is filed by the department of Central Government in respect of issue relating to same issue except where tax arrears comprises only penalty, fines or interest)

93. No refund of amount paid under the Scheme.

Any amount paid in pursuance of a declaration made under section 88 shall not be refundable under any circumstances.

203(6): No appellate authority or arbitrator, conciliator or mediator shall proceed to decide any issue relating to the specified tax mentioned in the declaration and in respect of which an order had been made under sub-section (1) of section 204 by the designated authority or the payment of the sum determined under that section.

206. No refund of amount paid under Scheme.

Any amount paid in pursuance of a declaration made under section 202 shall not be refundable under any circumstances.

7.

94. Removal of doubts.

For the removal of doubts, it is hereby declared that, save as otherwise expressly provided in sub-section (3) of section 90, nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in which the declaration has been made .

207. No other benefit, concession or immunity to declarant.

Save as otherwise expressly provided in sub-section (3) of section 204 and section 205, nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in which the declaration has been made.

8.

95 : Scheme not to apply in certain cases : tax arrear under any direct tax enactment, where prosecution for concealment has been instituted on or before the date of filing of the declaration under section 91 under any direct tax enactment in respect of any assessment year, to any tax arrear in respect of such assessment year under such direct tax enactment, where an order has been passed by the Settlement Commission under any direct tax enactment for any assessment year, to any tax arrear in respect of such assessment year under such direct tax enactment;, no appeal or reference or writ petition is pending

208 : Scheme not to apply in certain cases : tax arrear or specified tax, relating to an assessment year in respect of which an assessment has been made under section 153A or 153C, assessment or reassessment for any of the assessment years, in consequence of search initiated u/s. 37A, requisition made under section 37B, prosecution has been instituted on or before the date of filing of declaration under section 202, any undisclosed income from a source located outside India or undisclosed asset located outside India, 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;

before any appellate authority or High Court or the Supreme Court or no application for revision is pending before the Commissioner;

(iii) To any person in respect of whom prosecution for any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code (45 of 1960), The Foreign Exchange Regulation Act, 1973 (46 of 1973), the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985), , the Terrorists and Disruptive Activities (Prevention) Act, 1987 (28 of 1987) the Prevention of Corruption Act, 1988 (49 of 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 such enactment;

(iv) Detention has been made under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974),

(v) Any person notified under sub-section (2) of section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 ( 27 of 1992)

(b) Detention has been made under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974),

(c) To any person in respect of whom prosecution for any offence punishable under the provisions of the Indian Penal Code (45 of 1960), the Unlawful Activities (Prevention) Act, 1967 (37 of 1967), the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985), the Prevention of Corruption Act, 1988 (49 of 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) Any person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 (27 of 1992).

9.

96. Power of Central Government to issue directions etc.

209. Power of Central Government to issue directions etc.

10.

97. Power to remove difficulties.

210. Power to remove difficulties.

11.

98. Power to make rules.

211. Power to make rules.