If the amount of tax paid is more than the amount payable under 'Vivad se Vishwas', the appellant will be entitled to refund.
Even if you have already paid excess tax in the disputed demand, there is a way how ‘Vivad se Vishwas’ scheme may bring you some relief. The government has clarified that the amnesty scheme also covers the appeals in which the appellant has already paid the disputed demand either partly or fully. If the amount of tax paid is more than the amount payable under ‘Vivad se Vishwas’, the appellant will be entitled to refund without interest, said a statement by the Central Board of Direct Taxes. However, if taxes are paid after availing the benefits of the ‘Vivad se Vishwas’ scheme and later the taxpayer decides to take a refund of these taxes paid, it will not be possible.
It has also been clarified that Vivad se Vishwas can be availed by the appellant irrespective of whether the tax arrears have been paid or not paid. However, if there is a dispute on the tax amount, and a declaration is filed for the disputed tax, the full amount of interest levied or leviable related to the disputed tax shall be waived.
In the latest Budget 2020, the ‘Vivad se Vishwas’ Scheme was announced to settle the pending income tax litigation. The scheme was primarily aimed to reduce pending income tax litigation, generate timely revenue for the government, and benefit taxpayers. However, the benefits of the schemes were not very clear therefore the government issued a list of major questions and their answers so that the taxpayers can understand the scheme clearly and more people can take the benefit out of it.