The Central Board of Direct Taxes (CBDT) in pursuance of the announcement in Union Budget 2024-25 by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, the notified the Direct Tax Vivad Se Vishwas Scheme, 2024 ( DTVSV, 2024) to resolve pending appeals in the case of income tax disputes.
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The Scheme shall come into force with effect from 1st October 2024.
What is Direct Tax Vivad Se Vishwas Scheme, 2024?
The DTVSV Scheme provides for lesser settlement amounts for a ‘new appellant’ in comparison to an ‘old appellant’. The DTVSV Scheme also provides for lesser settlement amounts for taxpayers who file declaration on or before 31.12.2024 in comparison to those who file thereafter. It is another initiative by the Government towards litigation management.
Forms Under Direct Tax Vivad Se Vishwas Scheme, 2024
Four separate Forms have been notified for the purposes of the DTVSV Scheme. These are as under:
- 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
The DTVSV Scheme also provides that Form-1 shall be filed separately for each dispute provided that where appellant and the income-tax authority, both have filed an appeal in respect of the same order, single Form-1 shall be filed in such a case.
The intimation of payment is to be made in Form-3 and is to be furnished to the Designated Authority alongwith proof of withdrawal of appeal, objection, application, writ petition, special leave petition, or claim.
Forms 1 and 3 shall be furnished electronically by the declarant. These Forms will be made available on the e-filing portal of Income Tax Department i.e. www.incometax.gov.in.
For detailed provisions of the DTVSV Scheme, 2024, section 88 to section 99 of the Finance (No. 2) Act, 2024 may be referred to alongwith Direct Tax Vivad Se Vishwas Rules, 2024.
Amount payable by declarant Under Direct Tax Vivad Se Vishwas Scheme, 2024
Where a declarant files a declaration to the designated authority on or before the 31st December, 2024, the amount payable by the declarant under the Act shall be as mentioned in column (3) of the Table specified in section 90 of the Act, subject to the conditions as provided in the First, Second and Third provisos of the said Table.
Where a declarant files a declaration to the Designated Authority under section 91(1) of the Act, on or after the 1st January, 2025 but on or before the last date, the amount payable by the declarant under the Act shall be as provided in column (4) of the Table specified in section 90, subject to the conditions as provided in the First, Second and Third provisos of the Table.
Where the dispute includes issues covered in favour of declarant, the disputed tax in respect of such issues shall be the amount, which bears to tax, including surcharge and cess, payable on all the issues in dispute, the same proportion as the disputed income in relation to issues covered in favour of declarant bear to the disputed income in relation to all the issues in dispute.
Order by designated authority
The order by the designated authority under sub-section (2) of section 92, in respect of payment of amount payable by the declarant as per certificate issued under sub-section (1) of section 92, shall be in Form-4.
What is Direct Tax Vivad Se Vishwas Scheme, 2024?
The DTVSV Scheme provides for lesser settlement amounts for a ‘new appellant’ in comparison to an ‘old appellant’. The DTVSV Scheme also provides for lesser settlement amounts for taxpayers who file declaration on or before 31.12.2024 in comparison to those who file thereafter. It is another initiative by the Government towards litigation management.
