Direct Tax Dispute Resolution Scheme Rules, 2016 notified by CBDT

Direct Tax Dispute Resolution Scheme, 2016

The Direct Tax Dispute Resolution Scheme, 2016 incorporated as Chapter X of the Finance Act, 2016, shall come into force on the 1st of June, 2016 and Declarations under this Scheme may be made on or before the 31st December, 2016 in respect of tax arrears & specified tax. The relevant rules and forms in this regard have been notified vide notification no. 34 & 35 dated 26th May, 2016.

A. CBDT Notification on Direct Tax Dispute Resolution Scheme Rules, 2016

The CBDT vide Notification No. 35/2016 dt 26 May 2016 has notified Direct Tax Dispute Resolution Scheme Rules, 2016 which shall be effective from 1st June 2016, as under:

1. Short title and commencement:

(1) These rules may be called the Direct Tax Dispute Resolution Scheme Rules, 2016;

(2) They shall come into force on the 1st day of June, 2016,

2. Definitions:

In these rules, unless the context otherwise requires, –

(a) “Scheme” means the Direct Tax Dispute Resolution Scheme, 2016, specified under Chapter X of the Finance Act, 2016 (28 of 2016);

(b) “section” means section of the Finance Act, 2016 (28 of 2016);

(c) “Form” means the Forms appended to these rules;

(d) all other words and expressions used in these rules but not defined in these rules and defined in the Scheme under Chapter X of the Finance Act, 2016 (28 of 2016), shall have the same meanings respectively as assigned to them in that Scheme.

3. Form of declaration and undertaking under section 203:

(1) The declaration under sub-section (1) of section 203 shall be made in duplicate in Form-1 to the designated authority and verified in the manner specified therein.

(2) The undertaking referred to in sub-section (4) of section 203 shall be furnished in Form-2 alongwith the declaration and verified in the manner specified therein.

(3) The declaration under sub-rule (1) and the undertaking under sub-rule (2), as the case may be, shall be signed by the declarant or any person competent to verify the return of income on his behalf in accordance with section 140 of the Income-tax Act, 1961.

(4) The designated authority on receipt of declaration shall issue a receipt in acknowledgement thereof.

4. Form of certificate under sub-section (1) of section 204:

The designated authority shall issue a certificate referred to in sub-section (1) of section 204 in Form-3.

5. Intimation of payment:

The detail of payments alongwith proof thereof, made pursuant to the certificate issued by the designated authority shall be furnished by the declarant to the designated authority in Form-4.

6. Order under sub-section (2) of section 204:

The order by the designated authority under sub-section (2) of section 204 in respect of tax arrear shall be in Form-5 and in respect of specified tax shall be in Form-6.

CBDT Notification 35/2016 dt 26 May 2016

B. CBDT Notification on Cut Off Date for Declaration under Direct Tax Dispute Resolution Scheme, 2016

The CBDT vide Notification No. 34/2016 dt 26 May 2016 has notified 31 st Dec., 2016 as the cut off date on or before which a person may make declaration under the Direct Tax Dispute Resolution Scheme, 2016, as under:

In exercise of the powers conferred by section 202 of the Finance Act, 2016 (28 of 2016), the Central Government hereby appoints the 31st day of December, 2016 as the date on or before which a person may make a declaration to the designated authority in respect of tax arrear or specified tax under the Direct Tax Dispute Resolution Scheme, 2016.

CBDT Notification 34/2016 dt 26 May 2016

Leave a Reply