Direct Tax Vivad se Vishwas Scheme 2024: Time to Early Resolve Your Tax Disputes!

 

The Direct Tax Vivad se Vishwas Scheme 2024 provides a unique opportunity for taxpayers to resolve long-standing tax disputes with the Income Tax Department at a substantial discount on penalties and interest. If you have pending tax disputes, here’s everything you need to know about the scheme:

The scheme allows taxpayers to settle disputes pending with:
Commissioner (Appeals),
Appellate Tribunal,
High Court,
Supreme Court,
Dispute Resolution Panel (DRP)

Appeals/disputes filed as on 22.07.2024 either by the taxpayer or Income Tax Department is eligible for settlement under the scheme.

Payment Terms valid till 31.03.2024:
If the appeal is filed after 31.01.2020 and on or before 22.07.2024:
100% of the disputed tax is payable.
25% of the disputed penalty/interest must be paid.

If the appeal is filed on or before 31.01.2020:
110% of the disputed tax is payable.
30% of the disputed penalty/interest must be paid.

Example:
Suppose you have a disputed tax demand of ₹1,00,000 along with a penalty of ₹30,000.
Under this scheme, you would pay:
₹1,00,000 (disputed tax) + ₹7,500 (25% of ₹30,000 penalty).
The remaining ₹22,500 penalty and interest would be waived.