look news india
The Finance Ministry has published some clarifications and Frequently Asked Questions (FAQs) regarding the 'Vivad Se Vishwas Scheme 2024' related to direct taxes. This was announced in Budget 2024 itself. The objective of this scheme is to provide an opportunity to the taxpayers for dispute resolution for outstanding income tax cases by waiving off all outstanding penalty and interest amounts.
One thing to keep in mind here is that this waiver of penalty and interest is also conditional. To get the relief, you will have to submit the proper form and also deposit the disputed tax demand amount by the due date. If you also want to take advantage of the Vivad se Vishwas scheme, then you can also take advantage of it.
This letter issued in the form of Frequently Asked Questions (FAQs) answers various queries related to the entity eligible to avail the benefit of the Dispute Resolution Scheme and the taxes to be paid. The Income Tax Department said it has received several queries from stakeholders seeking guidance regarding various provisions once the scheme is notified from October 1, 2024.
The last date of the scheme has not been notified yet. The benefit of 'Vivad Se Vishwas' scheme can be availed by those taxpayers whose disputes are pending in the Supreme Court, High Court, Income Tax Appellate Tribunal, Commissioner/Joint Commissioner (Appeals) till July 22, 2024.
These include writs and special leave petitions (appeals), whether filed by the taxpayer or by 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 taxpayers file the declaration before December 31, 2024 to avail the benefits of this scheme, they will have to pay 100 percent of the disputed tax demand. In such cases, interest and penalty will be waived. However, in cases where the declaration is made on or after January 1, 2025, 110 per cent of the disputed tax demand will have to be paid by the taxpayer.
