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New Delhi, 15 October (HIST). The Central Board of Direct Taxes (CBDT) on Tuesday issued guidance regarding 'Vivad Se Vishwas' Scheme 2024 related to direct taxes. CBDT has issued a guidance note in the form of Frequently Asked Questions (FAQs).
The Finance Ministry said in a statement that the CBDT has issued Frequently Asked Questions (FAQs) on Direct Tax Vivad Se Vishwas Scheme, 2024 to provide clarity. According to the ministry, this note has been prepared to provide clarity and help taxpayers better understand the provisions of the scheme.
The ministry said that the CBDT, in this letter issued in the form of Frequently Asked Questions (FAQ), has answered various questions related to the entity eligible to avail the benefit of the dispute resolution scheme and the taxes to be paid. This guidance note can be viewed on the official portal of the Income Tax Department https://incometaxindia.gov.in/news/circular-12-2024.pdf.
The Income Tax Department said it has received several queries from stakeholders seeking guidance regarding various provisions of the scheme after it is notified with effect from October 1, 2024. The relevant rules and forms to implement this scheme have been notified on September 20, 2024. However, the expiry date of this scheme has not been notified yet.
For detailed provisions of the DTVSV Scheme, 2024, sections 88 to 99 of the Finance (No. 2) Act, 2024 may be referred to along with the Direct Tax Vivad Se Vishwas Rules, 2024.
The benefit of 'Vivad Se Vishwas' scheme can be availed by those taxpayers whose disputes or appeals are pending before the Supreme Court, High Court, Income Tax Appellate Tribunal, Commissioner or Joint Commissioner (Appeals) till July 22, 2024. They also include writs and special leave petitions (appeals), whether filed by the taxpayer or the tax authorities.
The scheme will also cover cases pending before the Dispute Resolution Panel (DRP) and revision petitions pending before the Commissioner of Income Tax. If any taxpayer files the declaration before December 31, 2024 to avail the benefits of the scheme, he will have to pay 100 per cent of the disputed tax demand. In such cases, their interest and penalty will be waived. However, in cases where the declaration is made on or after January 1, 2025, the taxpayer will have to pay 110 per cent of the disputed tax demand.
It is noteworthy that Union Finance Minister Nirmala Sitharaman had announced the Direct Taxes Related Vivad Se Vishwas (DTVSV) Scheme, 2024 to resolve the pending income tax disputes in the Union Budget 2024-25. This scheme has been enacted through the Finance (No. 2) Act, 2024.