The Finance Minister explained the Direct Tax Dispute Resolution Scheme, 2016 in the Notes on Clauses on Finance Bill, 2016. (2016) 381 ITR 169 (St.)(236) Clauses 197 to 208 of the Bill seeks to insert a new Chapter X in the Finance Bill, 2016 which deals with the Direct Tax Dispute Resolution Scheme, 2016.

The Scheme is proposed to come in force from 1st June, 2016 and be open for declaration made up to a date to be notified by the Central Government in the Official Gazette.

The new Chapter, inter alia, provides––

(a) The definition of certain expressions relating to “declarant”, “designated authority”, “disputed income”, “disputed tax”, “disputed wealth”, “specified tax” and “tax arrear”;

(b) The proviso relating to the declaration of tax payable under this Scheme by the declarant;

(c) The provisions relating to the particulars to be furnished in the form of declaration;

(d) The provisions relating to the time and manner of payment;

(e) The provisions relating to granting of immunity from initiation of proceedings in respect of an offence and imposition of penalty in certain cases;

(f) The provisions relating to no refund of amount paid under the Scheme;

(g) The provisions relating to other benefit, concession or immunity not to apply in other proceedings;

(h) The provisions relating to non-applicability of the Tax Dispute Resolution Scheme, 2016 in certain cases;

(i) The provisions relating to the power of the Central Government to issue directions; and

(j) The provisions relating to the power to remove difficulties in giving effect to the provisions of the Direct Tax Dispute Resolution Scheme, 2016.