Income Tax: CBDT chairman Ravi Agrawal has said taxpayers can opt for the ‘Vivad se Vishwas’ scheme, which was announced in the Union Budget 2024-25, from December 31, 2024. The scheme was announced to settle pending direct tax appeals. Agarwal said a notification in this regard and a set of FAQs will be issued soon.
“The first date is (going to be) 31st of December by when we the taxpayer is supposed to actually opt for the scheme (Vivad se Vishwas 2024). Very soon, we will notify this scheme along with the FAQs (frequently asked questions) and all those things…,” Agrawal told news agency PTI.
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He added that a “substantial” number of income tax appeals are logged at the appellate stage in different forums and it is expected that a “reasonable” number of taxpayers will avail the new scheme.
The proposed Direct Tax Vivad Se Vishwas Scheme, 2024, (2024 Scheme) in the Finance (No. 2) Bill, 2024, enables the settlement of disputes pending as on July 22, 2024, under Income-tax Laws.
EY noted that the scheme draws flavour from the previous Direct Tax Vivad Se Vishwas Act, 2020 (2020 Scheme) in the applicability, procedure and manner of the settlement of dispute.
The 2024 Scheme can be availed by taxpayers in various cases such as; Where :
(i) appeals/writ petition/special leave petition (SLP) relating to disputed tax, interest, penalty or fee is pending before the appellate authorities/High Court (HC) /Supreme Court (SC) ;
(ii) objections are filed before the Dispute Resolution Panel and the DRP is yet to issue directions,
(iii) DRP has issued directions, however, the tax authority is yet to pass an assessment order in conformity with such directions,
(iv) revision application is filed by the taxpayer before the Commissioner.
In terms of the 2024 scheme, a taxpayer may settle its eligible disputes by making payment of the amounts as determined by the Designated Authority (DA) as per the 2024 Scheme.
Eligible disputes
> The 2020 Scheme covered disputes pending as on 31 January 2020. The 2024 Scheme is patterned
on similar lines, and covers disputes (appeals/writs/SLPs) pending as on 22 July 2024, whether filed by taxpayer or tax authority, before:
• Commissioner (Appeals) or Joint Commissioner (Appeals),
• Dispute Resolution Panel (DRP),
• Income Tax Appellate Tribunal,
• High Court,
• Supreme Court.
> It also covers a pending application for revision filed by taxpayer before Commissioner, and a pending assessment after issue of directions by DRP.
> It also covers disputes relating to taxes determined under the provisions relating to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS).
Amount payable to settle dispute
Calculation of disputed tax