Good news for taxpayers! The Finance Ministry has made some changes to the Direct Tax Vivad Se Vishwas Scheme, 2024, removing “difficulties” that arose due to certain situations for taxpayers. This update in the scheme will bring relief to taxpayers who wanted to apply for the scheme but could not do so earlier.
“CBDT…makes the following order to remove the difficulty in respect of Direct Tax Vivad Se Vishwas Scheme, 2024 arisen” in certain situations, a circular issued by the ministry said.
In the circular, the government has issued important clarifications under the Direct Tax Vivad Se Vishwas Scheme, 2024, to address challenges faced during its implementation.
These clarifications pertain to appeals filed after July 22, 2024, but within the stipulated time, ensuring such cases are considered pending under the Scheme. This step aims to provide a fair resolution for taxpayers while maintaining consistency with the provisions of the scheme.
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Here’s everything you need to know about how these clarifications could impact disputed tax calculations and pending appeals.
The Direct Tax Vivad Se Vishwas Scheme, 2024, was introduced through the Finance (No.2) Act, 2024 (15 of 2024) and became effective from October 1, 2024. While implementing the scheme, certain issues were identified in situations where:
-An order was passed for a person on or before the specified date (July 22, 2024).
-The time to file an appeal against such an order was still available on that date.
-The appeal was filed after July 22, 2024, but within the stipulated time for filing the appeal.
-The appeal was filed without needing an application for condonation of delay.
Section 98 of the Finance (No.2) Act, 2024 allows the Central Government to resolve such difficulties by issuing an Order, provided it is consistent with the provisions of the scheme.
Therefore, the Central Government has issued the following clarifications:
-Appeals meeting the above conditions will be treated as pending as of July 22, 2024, for the purpose of the scheme.
-The person filing such an appeal will be considered an appellant under the scheme.
-The disputed tax for such cases will be calculated based on the appeal filed.
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