'Vivaad se Vishwas' Scheme 2024: End tax-related disputes with the government, know what is 'Vivaad se Vishwas Scheme 2024'..

To settle tax-related disputes, the Income Tax Department has issued guidance regarding the 'Vivaad se Vishwas' Scheme 2024 related to direct tax. This letter, issued in the form of frequently asked questions (FAQs), answers various questions related to the entity eligible to avail of the dispute resolution scheme and the taxes to be paid. The Income Tax Department said that it has received several questions from stakeholders seeking guidance regarding various provisions after the scheme was notified with effect from October 1, 2024. The expiry date of the scheme has not yet been notified.

The 'Vivaad se Vishwas' scheme can be availed by those taxpayers whose disputes/appeals are pending before the Supreme Court, High Courts, Income Tax Appellate Tribunal, Commissioner/Joint Commissioner (Appeals) as of July 22, 2024. These include writs and special leave petitions (appeals), whether filed by the taxpayer or the tax officers.

How much tax demand will have to be paid?
The scheme will also include cases pending before the Dispute Resolution Panel (DRP) and revision petitions pending before the Income Tax Commissioner. If taxpayers file a declaration before December 31, 2024, to avail of the scheme, they will have to pay 100 percent of the disputed tax demand. Interest and penalty will be waived in such cases.

However, in cases where the declaration is made on or after January 1, 2025, 110 percent of the disputed tax demand will have to be paid by the taxpayer. Let us tell you that in the General Budget 2024, the government announced the launch of Vivaad se Vishwas Yojana-2.

According to the budget announcement, income tax cases with a period of 3 years to five years can be reopened after the end of the assessment year. Provided that the case is of Rs 50 lakh or more. In search cases also, a time limit of 6 years before the year of search has been proposed, whereas at present this period is 10 years.