Direct Tax Vivad Se Vishwas Scheme: Submit Declaration by Dec 31 to Avoid Higher Tax Costs
By: Admin
Date: December 30, 2024
Categories: Income Tax News | News
Reading Time: 4 Minutes
The Vivad Se Vishwas Scheme, introduced during the Budget 2024 speech by Union Finance Minister Nirmala Sitharaman, offers taxpayers an opportunity to resolve disputes with the income tax department. Through this scheme, individuals can settle outstanding tax liabilities by paying the disputed amount along with a specified percentage. By doing so, they can avoid penalties and interest.
To take advantage of reduced settlement costs, taxpayers must submit their declarations and complete payments by December 31, 2024. Delays beyond this date will lead to higher costs under the scheme.
Key Features of the Scheme
- Lower Costs Until Dec 31
Taxpayers who submit their declarations by December 31 will pay 100% of the disputed tax amount, with penalties and interest waived. - Increased Costs from Jan 1
From January 1, 2025, declarations will require taxpayers to pay 110% of the disputed tax amount.
This limited-time window highlights the importance of immediate action for taxpayers to secure reduced costs.
Penalty Charges: A Comparison
- Before December 31, 2024: 100% of the disputed tax amount, no penalties or interest.
- On or After January 1, 2025: 110% of the disputed tax amount, higher overall liabilities.
Act now to avoid unnecessary financial burdens.
Eligibility Criteria
The scheme applies to the following:
- Ongoing Appeals
Cases with pending appeals, writ petitions, or special leave petitions as of July 22, 2024. - Dispute Resolution Panel Cases
Taxpayers who filed objections with the DRP before July 22, 2024, or whose assessments remain pending post-DRP instructions. - Pending Revision Applications
Cases unresolved under Section 264 as of July 22, 2024.
Forms Required for Participation
To participate, taxpayers must use these forms:
- Form 1: Declaration and Undertaking.
- Form 2: Certificate issued by the Designated Authority.
- Form 3: Payment Notification submitted by the declarant.
- Form 4: Final Settlement Order issued by the Designated Authority.
Forms must be submitted electronically via the e-filing portal at www.incometax.gov.in. Once submitted, the income tax department will issue Form 4, marking the closure of the dispute.
Take Action Now
Avoid higher costs and ensure compliance by filing your declaration under the Vivad Se Vishwas Scheme 2.0 before December 31, 2024. Submitting beyond this deadline will increase liabilities and penalties.
Act immediately to settle disputes, reduce liabilities, and secure financial peace of mind.
