Explanation:

In Budget for 2016-17, the government had announced Direct Tax Dispute Resolution Scheme, a scheme to settle the retrospective tax disputes by waiving interest and penalty if the companies agreed to pay the principal amount of the tax demand.
Under this scheme a taxpayer whose appeal is pending as on February 29, 2016 before the CIT (Appeals) can settle his case by paying the disputed tax and interest up to the date of assessment.
For a disputed tax amount of up to Rs 10 lakh, the penalty will be forgone. In cases where the disputed tax amount is over Rs 10 lakh, a penalty of 25 percent will be levied.
For penalty appeals, the scheme allows the assessee to pay only 25 percent of the penalty.
The scheme also gives immunity against specified tax by allowing the assessee to pay only the disputed tax amount, and get immunity against paying the interest and penalty, provided he withdraws all appeals against the government in all judicial forums. Assessees can avail this scheme from June 30 to December 31 this year.
A specified tax is a consequence of an amendment made with retrospective effect in Income Tax Act or Wealth Tax Act.