Some important issues in Direct Tax Vivad se Vishwas Scheme:

 

Introduction:

The Direct Tax Vivad Se Vishwas Scheme, 2024, announced in the Union Budget 2024-25 and effective from October 1, 2024, aims to resolve pending tax disputes by allowing taxpayers to settle their cases at reduced amounts.

Some pertinent issues discussed in QnA:

1. If a declaration is found to be false, what are the consequences?

The declaration shall be rendered invalid and deemed not to have been made.

Any amount paid in pursuance of declaration shall not be refundable. So the assessee cannot claim a refund of the amount.

2. If an assessment order has been filed, but, the taxpayer has not filed the appeal, since the time to file an appeal by the taxpayer exists on 22.7.2024. Can such cases be covered by the scheme?

No, such cases cannot be covered by the scheme.

3. Can the assessee settle the disputed penalty amount and keep the tax amount pending under litigation?

No, it would not be possible to litigate on tax amount and settle penalty under the scheme.

4. How many Form 1 have to be filed in case both taxpayer and department have filed appeal for the same assessment order?

 Rule 4 says that only 1 Form 1 has to be filed.

5. Are disputes relating to wealth tax, STT, commodity transaction tax and equalisation levy covered?

No, only disputes relating to income-tax are covered.

6. Can the assessees settle only a portion of their tax arrears, particularly those with disputes containing both qualifying and non-qualifying tax arrears?

The scheme mandates settling the dispute in its entirety, including any non-qualifying tax arrears.