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The Vivad Se Vishwas Scheme 2024 was launched during the presentation of Budget 2024, aiming to allow taxpayers to pay a lower tax amount.
Vivad Se Vishwas Scheme 2.0 was launched in October
The central government announced the Vivad Se Vishwas Scheme in Budget 2024, to support taxpayers in settling their pending disputes with the income tax department. Through the scheme, taxpayers can pay off their disputed tax amount along with a specified percentage to resolve their disputes and avoid further penalties. With that said, with the year 2024 coming to an end, those who can complete the payment along with the application form by December 31, 2024, will have their dues cleared at lower costs.
The date to settle the tax disputes is limited to December 31, 2024, whereas any application made on or after January 1, 2025, will become ineligible for a lower tax amount. Taxpayers filing the declaration before December 31 will have to pay 100 per cent of the disputed tax demand, with their interest and penalties waived. Declarations made on or after January 1, 2024, will need to be 110 per cent of the disputed tax demand.
During the annual budget 2024-25, Union Finance Minister Nirmala Sitharaman unveiled the Vivad Se Vishwas Scheme 2024 in July, extending it to taxpayers to help them settle their outstanding income tax issues. Later, Vivad Se Vishwas 2.0 came into operation on October 1, 2024.
Eligibility For Vivad Se Vishwas Scheme 2024
– Anyone with a pending appeal, written petition, or special leave petition as of July 22, 2024.
– Individuals who have filed objections before the Dispute Resolution Panel before July 22, 2024, and are still awaiting a decision.
– In cases where the DRP has issued directions but assessment remains incomplete as of July 22, 2024.
– Those with the revision applications under Section 264, pending as of July 22, 2024.
For the scheme, taxpayers need these forms:
Form 1: Declaration and Undertaking
Form 2: Certificate by Designated Authority
Form 3: Intimation of payment form
Form 4: Order for full and final settlement of tax arrears.
The main objective of the scheme is to resolve weaker cases and save on litigation costs for taxpayers. A few small disputes concerning issues like capital gains, unsecured loans, or warranty claims can be efficiently settled.
