In a relief for taxpayers, the government has extended the deadline of Vivad Se Vishwas Scheme 2024 until January 31, 2025. This scheme’s second phase was announced in the Union budget in July 2024 to help taxpayers settle an ongoing dispute by paying a lower income tax.
The Direct Tax Vivad Se Vishwas Scheme was brought in with an objective to reduce pending income tax litigation, generate timely revenue for the government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process.
“The Central Board of Direct Taxes (CBDT), in exercise of its powers under sub-section (2) of section 97 of the Direct Tax Vivad Se Vishwas Scheme, 2024 extends the due date for determining amount payable as per column (3) of the Table specified in section 90 Of the Scheme from 31 December, 2024 to 31 January, 2025,” according to a circular dated December 30, 2024.
With the scheme’s deadline being extended, the taxpayers availing the scheme can settle their dispute by paying 10% lower tax amount.
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“Accordingly, notwithstanding anything contained in the Direct Tax Vivad Se Vishwas Scheme, Rules or Guidance Note of 2024, in such cases where declaration is filed on or before 31 January, 2025, amount payable shall be determined as per column (3) of the Table specified in section 90 of the Scheme, and where declaration is filed on or after 1 February, 2025 , Amount payable shall be determined as per column (4) of the said Table,” said The Income Tax Department in the circular.
The CBDT notified the Direct Tax Vivad Se Vishwas Scheme, 2024 in September this year and it came into force with effect from 1st October 2024.
Four separate forms were notified for the purposes of the 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 scheme also provides that Form-1 shall be filed separately for each dispute provided that where appellant and the income-tax authority,
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