look news india
Dispute to Trust Scheme: The central government has launched the Direct Tax Dispute Settlement Scheme 'Vivaad se Vishwas 2.0' from October 1. The scheme was announced in Budget 2024-25 in July. The scheme was launched to settle certain income tax disputes of pending appeals. In which the appeal has been filed before 31 January 2020, but if the taxpayer has filed an appeal before 22 July 2024, then he will be relieved from the case by depositing only the tax dispute amount. But the taxpayer will have to deposit the entire amount of the tax dispute by 31 December 2024.
If the taxpayer deposits this amount on or after January 1, 2025, he will have to deposit 110 per cent of the amount including the disputed tax amount. The Vivaad se Vishwas Scheme 2024 will be applicable in cases where the Income Tax Department has raided the taxpayer and an investigation has been conducted under sections 132 and 132 (A) of the Income Tax Act and the amount of tax dues has been assessed.
When will we benefit from trust through conflict?
Any income received from a source outside India and any property hidden or undeclared by the taxpayer is found outside India and in such cases the Black Money Act has been applied against the taxpayer, then he will be given the benefit of the Vivaad Vishwas scheme. Even in such cases where any other prescribed rule has been violated, the benefit of Vivaad se Vishwas scheme will be given.
An appeal pending before the Appellate Authority or any other tax authority has raised objections before the DPR, but no order has been passed by the DPR. In such a case, if an application has been made by the taxpayer under section 264 of the Act and the same has been kept pending till a certain date, then the benefit of Vivaad se Vishwas scheme will be given in such a case also.
In cases where the taxpayer has filed an appeal on or before January 31, 2020, 110 percent of the tax dispute amount must be deposited by December 31, 2024. Taxpayers will have to pay 25 percent of the disputed tax amount as interest, penalty and fees. If the taxpayer has to deposit the disputed tax amount on or after January 1, 2025, then he will have to deposit 30 percent of interest, penalty or fee on the disputed tax amount.
In cases related to the amount of interest, penalty and fee on tax, if the appeal is filed by 31 January 2020, the taxpayer can get exemption by paying 30 percent of the disputed amount of tax and interest, penalty and fee by 31 December 2024. On the other hand, those who have to deposit the disputed tax amount on or after 1 January 2025 will have to pay 35 percent interest, penalty and fee on the tax amount.