A Short overview of the Direct Tax Vivad se Vishwas Scheme, 2024
Finance Act, 2024, has introduced the Direct Tax Vivad se Vishwas Scheme, 2024, building on the success of the previous Vivad Se Vishwas Act, 2020. This initiative addresses the increasing backlog of appeals at the Commissioner of Income-tax (Appeals) level, aiming to reduce pending income tax litigation through a structured dispute settlement mechanism.
Under this scheme, eligible taxpayers can resolve their outstanding tax disputes by paying a specified portion of the tax arrears.
In this context, the CBDT has issued Notification No. 103/2024, dated September 19, 2024, announcing that the Direct Tax Vivad se Vishwas Scheme, 2024, will come into effect on October 1, 2024.
The scheme is applicable to cases with disputes or appeals pending as of July 22, 2024. This includes matters before the Supreme Court, High Court, Income Tax Appellate Tribunal, Commissioner/Joint Commissioner of Income-tax (Appeals), and the Dispute Resolution Panel. It also covers situations where the Dispute Resolution Panel has issued directions, but the final assessment order is still pending, as well as cases where revision petitions await a decision from the Commissioner of Income Tax.
The copy of the circular issued by CBDT is as under:
