Vivad Se Vishwas Scheme 2024: Settle Tax Disputes by December 31 to Avoid Penalties
Date: December 25, 2024 | By: Admin
Categories: Income Tax News | News | Reading Time: 4 Minutes
The Vivad Se Vishwas Scheme 2024 provides a golden opportunity for taxpayers to resolve pending income tax disputes by December 31, 2024. Announced during Budget 2024, the scheme encourages taxpayers to settle disputes with reduced penalties, aiming to streamline tax compliance and reduce litigation.
Key Features of the Scheme
1. Dispute Settlement Process
To participate, taxpayers must pay the disputed tax amount along with a specified percentage and submit Form 1 to the Income Tax Department. Once the payment is made, the department will waive additional penalties and interest, concluding the dispute.
2. Deadlines and Penalties
- Before December 31, 2024: Taxpayers pay 100% of the disputed tax, with interest and penalties waived.
- On or after January 1, 2025: Taxpayers must pay 110% of the disputed tax amount.
3. Eligibility
- Appeals, writ petitions, or special leave petitions filed as of July 22, 2024.
- Cases pending with the Dispute Resolution Panel (DRP) or Assessing Officer under specified Income Tax Act sections.
- Applications for revision under Section 264 that remain pending.
Implementation Forms
The scheme requires the following forms for participation and resolution:
- Form 1: Declaration and Undertaking by the taxpayer.
- Form 2: Certificate issued by the Designated Authority.
- Form 3: Intimation of payment by the taxpayer.
- Form 4: Final order for settlement of tax arrears.
Key Dates and Conditions
This scheme applies to appeals unresolved as of July 22, 2024, even if resolved before filing the declaration. According to revised CBDT FAQs, the disputed tax is computed as though the appeal were still pending.
Objectives of the Scheme
- Simplify and Expedite: Resolve tax disputes efficiently.
- Encourage Compliance: Offer reduced penalties to promote participation.
- Clear Backlogs: Reduce the volume of pending disputes with appellate bodies.
Act Now to Avoid Higher Penalties
Taxpayers are urged to utilize the Vivad Se Vishwas Scheme 2024 before the deadline to resolve disputes and prevent additional penalties. This initiative serves as a crucial step towards reducing litigation and improving tax compliance across the country.
