The Central Board of Direct Taxes (CBDT) on Saturday rolled out the Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV), which will be effective from October 1, 2024. The DTVSV Scheme has been floated to resolve income tax disputes and proposed by Finance Minister Nirmala Sitharaman in the full Budget 2024-25.
The scheme provides for lesser settlement amounts for a ‘new appellant’ in comparison to an ‘old appellant’. The DTVSV Scheme will offer lesser settlement amounts for taxpayers who file declarations on or before 31.12.2024 in comparison to those who file thereafter.
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Key features
> The scheme will include lower settlement amounts for new appellants compared to old appellants.
> Besides, taxpayers who submit their declarations by December 31, 2024, will also benefit from reduced settlement amounts.
> Four separate Forms have been notified for the purposes of the DTVSV Scheme. These are as under:
Form-1: Form for filing declaration and Undertaking by the declarant
Form-2: Form for Certificate to be issued by Designated Authority
Form-3: Form for Intimation of payment by the declarant
Form-4: Order for Full and Final Settlement of tax arrears by Designated Authority
> The DTVSV Scheme provides that Form-1 shall be filed separately for each dispute provided that where appellant and the income-tax authority, both have filed an appeal in respect of the same order, single Form-1 shall be filed in such a case.
> The intimation of payment is to be made in Form-3 and is to be furnished to the Designated Authority along with proof of withdrawal of appeal, objection, application, writ petition, special leave petition, or claim.
> Forms 1 and 3 shall be furnished electronically by the declarant. These Forms will be made available on the e-filing portal of Income Tax Department i.e. www.incometax.gov.in.
> For detailed provisions of the DTVSV Scheme, 2024, section 88 to section 99 of the Finance (No. 2) Act, 2024 may be referred to along with Direct Tax Vivad Se Vishwas Rules, 2024.
The scheme is available for taxpayers with pending income tax disputes before various courts and tribunals, including but not limited to the Supreme Court, high courts, Income Tax Appellate Tribunal, and Commissioner/ Joint Commissioner (Appeals).
Moreover, it encompasses cases in front of the Dispute Resolution Panel (DRP) and revision petitions with the Commissioner of Income Tax.
The government anticipates that the scheme will facilitate the resolution of approximately 2.7 crore direct tax demands totaling around Rs 35 lakh crore.