Pending income tax disputes: FAQs on Vivad Se Vishwas Scheme 2024

For detailed provisions of the Direct Tax Vivad Se Vishwas Scheme, 2024, sections 88 to 99 of the Finance (No. 2) Act, 2024, may be referred along with the Direct Tax Vivad Se Vishwas Rules

The Finance Ministry has released a note in the form of frequently asked questions (FAQ) regarding the Direct Tax Vivad Se Vishwas Scheme, 2024.

 

“In order to facilitate the various queries raised by the stakeholders following the enactment of the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, the Central Board of Direct Taxes (CBDT) has today issued a Guidance Note in the form of Frequently Asked Questions (FAQs). This note is designed to provide clarity and assist taxpayers in better understanding the provisions of the Scheme,” said the ministry in a press statement.

 

What is Direct Tax Vivad Se Vishwas

 

 

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced in the Union Budget 2024-25 to resolve pending income tax disputes. The scheme was enacted through the Finance (No. 2) Act, 2024. Additionally, the corresponding Rules and Forms for implementing the Scheme were notified on September 20, 2024.

 

Which type of tax appeals are covered under DTVSV

 

A person who has an appeal, writ petition (WP), or special leave petition (SLP) filed by either themselves, the Income Tax authority, or both, before an appellate forum, with the matter still pending as of the specified date, i.e., July 22, 2024; or

 

A person who has submitted objections before the Dispute Resolution Panel (DRP) under Section 144C, and the DRP has not issued any directions by July 22, 2024; or

 

A person whose case has received directions from the DRP under Section 144C (5) but the assessing officer (AO) has not completed the assessment under Section 144C (13) by July 22, 2024; or

 

A person who has filed an application for revision under section 264 of the Act, and the application remains pending as of July 22, 2024.

 

Which cases are not covered under the scheme

 

Cases pertaining to an assessment year where the assessment was completed under Sections 143(3), 144, 147, 153A, or 153C, based on a search conducted under sections 132 or 132A.

 

Cases related to an assessment year where prosecution was initiated before the declaration was filed.

 

Cases involving undisclosed income from foreign sources or undisclosed assets located outside India.

 

Cases where the assessment or reassessment was based on information received through an agreement under sections 90 or 90A, if it relates to any tax arrears.

 

Types of forms specified in the scheme

 

Form-1: Form for filing declaration and undertaking by the declarant.

 

Form-2: Form for certificate to be issued by designated authority.

 

Form-3: Form for intimation of payment by the declarant.

 

Form-4: Order for full and final settlement of tax arrears by designated authority.

 

What are various timeline specified in the scheme

 

Declaration and Undertaking shall be filed by tax payer in Form-1 on or before 31.12.2024 to keep the amount payable on the lower threshold. In case of filing the declaration and undertaking beyond 31.12.2024, amount payable will increase as specified in, rates Table-1 above.

 

The Designated Authority shall issue Form-2 within a period of fifteen days from the date of receipt of the declaration to determine the amount payable by the taxpayer.

 

The tax-payer shall pay the amount as determined in Form-2 within a period of fifteen days from the date of receipt of the certificate, and shall intimate the details of such payment in Form-3.

 

Upon receipt of Form-3, Designated Authority shall pass an order in Form-4 stating that the tax- payer has paid the full and final amount.

 

Are disputes related to other taxes covered?

 

Only Income Tax disputes are covered.

 

Based on the circular issued by the tax department, here is a table outlining the percentage of the disputed amount that needs to be deposited when applying for the Direct Tax Vivad Se Vishwas 2024 Scheme.