Direct Tax Vivad Se Vishwas Scheme, 2024: A Comprehensive Guide
The Central Board of Direct Taxes (CBDT) has officially notified the Direct Tax Vivad Se Vishwas Scheme, 2024, which will be operational from October 1, 2024 . This scheme aims to resolve disputes related to direct taxes, providing taxpayers an opportunity to settle pending tax disputes by paying reduced penalties and interest, thus reducing litigation.
Eligibility Criteria
The scheme is applicable to individuals defined under Section 89, including those with pending appeals before appellate authorities, Dispute Resolution Panel objections, or applications for revision under Section 264 .
Key Features of the Scheme
– Payment Structure: Taxpayers can settle disputes by paying the disputed tax amount, with varying percentages applicable based on the timing of payment .
– Immunity from Further Proceedings: Taxpayers opting for the scheme will receive immunity from further proceedings related to the disputed tax, penalty, or interest.
– Withdrawal of Appeals: Taxpayers must withdraw ongoing appeals related to the tax dispute before the Income Tax Appellate Tribunal (ITAT) or Commissioner (Appeals) .
Exclusions
The scheme does not apply to certain categories of tax arrears, including:
– Search and Seizure Cases: Arrears related to assessments based on searches initiated under Sections 132 or 132A .
– Prosecution Cases: Taxpayers with pending prosecution or criminal cases .
– Undisclosed Foreign Income: Arrears related to undisclosed foreign income or assets.
Benefits
The Direct Tax Vivad Se Vishwas Scheme, 2024, offers numerous benefits, including:
– Reduced Litigation: Resolving disputes efficiently, reducing the burden on courts .
– Immunity from Penalties: Taxpayers receive immunity from further penalties and interest .
– Simplified Process: A straightforward process for settling disputes, promoting ease of doing business.
The copy of the order is as under:
