Where only a part of taxes is outstanding, is the waiver of interest or penalty in full?

Yes

If the order of assessment was made on 31.03.1998 but the notice of demand was served after 31.03.1998 can the declaration be made under the Samadhan Scheme?

Yes. The demand is determined on the day the order of assessment is made.

Where refund for an earlier year is adjusted against the demand for any year, willsuch an adjustment be regarded as the payment of tax?

Yes, the adjustment of refund payable is one of the modes of payment of taxes.

Where the tax arrears comprise tax, interest and interest tax, how will the part payment be first appropriated -- towards tax or interest?

The part payments are appropriated first towards tax and then towards interest.

In a case where taxes are outstanding on 31.03.1998 and also on the date of declaration but the order of penalty is passed after 31.03.1998, will the declarant be entitled to the waiver of penalty?

Section 91 empowers the designated authority to grant immunity from the imposition of penalty in respect of income which is the subject matter of declaration. As the taxes outstanding on 31.03.1998 will be covered under the declaration the designated authority can grant waiver of such penalty.

Where in an assessment made under Section 143(1)(A), the assessing officer makes certain adjustments to the total income and levies additionaltax, will such additional tax be regarded as tax or penalty?

The additional tax is only a tax under the income Tax Act, 1961.

The scheme offers full waiver of interest and penalty where the tax arrears includes such penalty or interest along with tax. What kind of interest would be open for such waiver?

All interest and penalties that are directly related to assessed income or arrears of taxes will be open for full waiver, if the taxes are outstanding on the specified dates, for instance, interest under Sections 234 A, 234B, 234C, 139B, 215, 216, 217, 158BFA, 220(2) or the interest or penalty is not directly related to assessed income/arrears or tax, waiver of only 50 per cent thereof is available, eg, interest under Section 201A, penalties under under Sections 271(1)(b), 271A, 271B, 271BB, 271C, 271D, 271E, 271F, 272A, 272AA, 272BB etc.

Where only certain items of addition are in dispute, can the assessee take advantage of the schemes for the entire demand of the year?

Yes. Thescheme is applicable to the entire demand of an assessment year.

Does the scheme covers cases where taxes are outstanding on 31.03.1998 but the appeal is filed after 31.03.1998?

Yes, the pendency of appeal etc should be on the date of declaration.

In respect of assessment related to assessment years prior to assessment year 1993-94, the appeal is filed against the order of assessment in the case of the firm and the consequential effect of orders is given in the hands of the partners. Will the appeal filed by the firm be treated as appeal filed by the partners as far as tax arrears in their hands are concerned?

Yes.

Where the declarant fails to pay full amount determined as payable under Samadhan Scheme would he get credit for the partly paid taxes in the subsequent years?

If the declarant fails to pay full amount payable by him under the scheme, he would not be entitled to the benefits of the Scheme. The amount paid cannot be refunded to him either. He may however, seek creditfor the payment so made against the outstanding arrears. What is the time limit for the designated authority to grant immunity from prosecution and penalty?The designated authority will grant immunity on fulfilment of all the conditions provided for in section 90 including the withdrawal of appeal/ write/reference etc. It shall be granted as quickly as possible.

Where the assessee has received order under Section 264 but has moved a petition under Section 154 of the Act before the CIT, can he avail of the scheme?

There would be no pendency of revision proceedings before the CIT in such cases.

Is the scheme open to cases where order of assessment have been set aside before 31.03.1998, but reassessments are still pending?

There is no tax arrears on 31.03.1998 or on the date of declaration.

Does the scheme cover cases of estate duty?

No.

Is settlement of outstanding interest alone possible when the declarant does not want to give up his right of appeal against the quantum ofincome or tax?

No. The Samadhan scheme is a package for settlement of tax arrears of a particular assessment year in entirety. Settlement of any part of arrears is not possible. If however, arrears relating to only interest and penalty are outstanding, whether relating to any particular assessment year or otherwise, these can be settled at 50 per cent of the arrears.

In pursuance of demand raised, the assessees pay certain parts of demand in consequence of order of stay/instalments etc. Will the amount so paid be treated as outstanding on the date of declaration?

No. The tax arrears mean the taxes outstanding on the date of declaration.

The Jindals are Delhi based chartered accountants.