CBDT Launches Direct Tax Vivad Se Vishwas Scheme: Settle Tax Disputes Easily; Check Forms and Benefits

Vivad Se Vishwas Scheme 2024: The Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV), has been announced by the Central Board of Direct Taxes (CBDT) and is scheduled to go into effect on October 1, 2024.

With the Direct Tax Vivad Se Vishwas system, taxpayers will be able to settle income tax appeals, writs, and petitions before various appellate authorities, including the Supreme Court and high courts. The goal of this scheme is to reduce income tax litigation.

What is Vivad se Vishwas Scheme 2024?

Under this plan, taxpayers will have until July 22 to resolve writ petitions, special leave petitions, and appeals that are pending in high courts, the Supreme Court, and appellate tribunals.

The exact date of the program has not yet been decided, despite the announcement of its operational date.

According to the plan, a taxpayer may elect to resolve a direct tax appeal by paying the entire tax amount due and forgoing interest and penalties, rather than going to court if the appeal is pending before a commissioner, tribunal, high court, or Supreme Court. This is applicable in situations where the taxpayer has appealed.

Advantages of Vivad se Vishwas Scheme 2024

Notably, the highly awaited respite was declared in the Finance Minister Nirmala Sitharaman's Budget 2024, which was delivered in July of this year.

In comparison to the previous appellants, the new appellants will get smaller settlement amounts. In addition, taxpayers will be eligible for smaller settlement amounts if they turn in their disclosures by December 31, 2024.

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Four Specific Forms for Different Needs

Form 1: For the taxpayer (declarant) to file a declaration and undertaking

Form 2: A certificate from the Designated Authority attesting to the declaration's acceptance

Form 3: To notify the authorized authorities of the payment made by the taxpayer

Form 4: The definitive decree issued by the Designated Authority signifying the complete and conclusive resolution of the outstanding taxes

Which Form to Fill for Vivad se Vishwas Scheme 2024?

Taxpayers must file a new Form-1 for each dispute, unless they and the income-tax authorities file appeals in the same order, in which case a single Form-1 will do.

Taxpayers need to submit Forms 1 and 3 online through the Income Tax Department’s e-filing website at www.incometax.gov.in. After making the payment, they must provide proof of withdrawal for any related appeals, objections, or court cases (like writ petitions or special leave petitions) along with Form-3.

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