Direct Tax Dispute to Vishwas Scheme-2024 (DTVSV 2024) was announced by Finance Minister Nirmala Sitharaman in the Union Budget. Under this scheme, taxpayers will get an opportunity to settle the disputed case. They will be able to close their cases by paying less penalty and less interest
Finance Minister Nirmala Sitharaman announced the Direct Tax Dispute to Vishwas Scheme -2024 in the Union Budget (2024-25). The aim of this scheme is to reduce the disputed income tax cases, which are pending for a long time. This scheme will come into effect from October 1, 2024.
Under the Direct Tax Dispute to Vishwas Scheme-2024 ( DTVSV 2024 ), taxpayers will get an opportunity to settle the disputed case. They will be able to close their cases by paying less penalty and less interest. Till December 31, 2024, taxpayers can take advantage of this scheme by paying less penalty and less interest. From January 1, 2025, more money will have to be paid to settle disputed cases under this scheme. The last date for settlement of the case under this scheme has not been announced yet.
Following are some of the highlights of the Dispute to Trust Scheme-2024:
-Taxpayers whose cases are pending in the Income Tax Appellate Tribunal (ITAT), High Courts and Supreme Court can avail the benefit of this scheme.
-Taxpayers will be able to avail this scheme only if their appeal or petition is pending before July 22, 2024.
-Taxpayers will be able to settle the case by paying the disputed tax amount plus a lower penalty or lower interest or an amount calculated as a percentage of the disputed tax amount. The calculation of the disputed tax amount in percentage will depend on the status of the litigation and the timeline of their application.
-Four forms have been notified under the scheme:
- Form-1: Declaration and undertaking by the taxpayer.
- Form-2: Certificate issued by the designated authority.
- Form-3: Intimation of payment from taxpayer.
- Form-4: Order for full and final settlement of outstanding tax by the designated authority.
-Taxpayers who wish to avail the scheme can use Form 1 and Form 3 through the e-filing portal of the Income Tax Department (WWE.incometax.gov.in).
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Important deadlines and provisions
-Taxpayers who file declaration for settlement of the case before December 31, 2024 will have to pay less amount for settlement.
-Form 1 will be required for every dispute unless the taxpayer and the income tax authority have filed an appeal against the order.
-The Payment Intimation (Form 3) submitted to the Designated Authority should be accompanied by proof of withdrawal of the issued appeal or petition.
The aim of the Vivaad se Vishwas scheme is to simplify tax compliance and reduce the number of disputed cases. The last date to avail the benefits of this scheme has not been announced yet. The government can announce the last date based on the response received to this scheme.
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