The Direct Tax Vivad Se Vishwas (DTVSV) Scheme 2024 aims to help taxpayers resolve pending income tax disputes by offering an opportunity to settle them with minimal hassle. Introduced as part of the Union Budget 2024 by Finance Minister Nirmala Sitharaman, the revised scheme builds on its predecessor launched in 2020, incorporating new provisions to handle disputes arising after that period.
This scheme allows taxpayers to pay the disputed tax amount and a specified percentage in addition, while waiving off all associated interest and penalties, thus effectively closing the dispute.
Key Features of the Vivad Se Vishwas Scheme 2024
- Taxpayer Benefits:
- Resolves long-pending tax disputes.
- Waives off interest and penalties imposed by the Income Tax Department.
- Operational Timeline:
- Made operational on October 1, 2024.
- Applicable to disputes pending as of July 22, 2024.
- Eligibility Criteria:
- Appeals pending as of July 22, 2024.
- Certain conditions for appeals and applications filed before specific deadlines.
Detailed Explanation of New FAQs
The Income Tax Department has clarified several key scenarios for taxpayers through a new set of FAQs regarding the scheme. Here’s a detailed breakdown:
- Appeals Disposed of Before Filing a Declaration:
- Eligibility: If an appeal was disposed of on merits or dismissed as withdrawn before filing the declaration but was pending as of July 22, 2024, the case is eligible for settlement.
- Tax Calculation: Disputed tax will be calculated as if the appeal is still pending.
- Appeals Disposed of After Filing Declaration:
- Eligibility: Cases where appeals are disposed of after submitting Form-I declaration are still eligible for settlement.
- Expired Time Limit for Filing Appeal Before July 22, 2024:
- Ineligible: If the appeal was filed after July 22, 2024, even with a condonation of delay, such cases are not eligible for the scheme.
- Appeals Admitted After Filing for Delay Condonation:
- Eligibility: Appeals filed with condonation of delay before July 22, 2024, and admitted later, are eligible for settlement.
- Appeals Filed Under Section 143(1):
- Eligibility: Appeals against intimation under Section 143(1) pending as of July 22, 2024, are eligible for the scheme.
- Review Petitions Pending in High Courts or Supreme Court:
- Ineligible: Review petitions do not qualify as pending appeals and are not covered under the scheme.
- Proceedings Before Income Tax Settlement Commission (ITSC):
- Ineligible: Cases pending before ITSC or writ petitions against ITSC orders are not eligible.
- Appeals Against Penalty Assessments:
- Separate Settlement Required: Penalty appeals, such as those under Sections 271B, 271BA, and 271DA, are not automatically waived and must be settled separately.
Example: Calculating Tax Amount Payable Under the Scheme
Let’s assume a taxpayer has a pending tax dispute involving ₹10 lakh in disputed tax:
- Base Tax Amount: ₹10 lakh.
- Additional Percentage: 10% of ₹10 lakh = ₹1 lakh.
- Total Payable: ₹10 lakh + ₹1 lakh = ₹11 lakh.
All penalties and interest on the disputed tax amount will be waived.
Summary Table of FAQ Scenarios
| Scenario | Eligibility | Remarks |
|---|---|---|
| Appeal pending on July 22, 2024 | Eligible | Disputed tax calculated as if appeal is still pending. |
| Appeal disposed of after filing Form-I declaration | Eligible | Case remains eligible for settlement. |
| Appeal filed after July 22, 2024 (with delay condonation) | Ineligible | Appeal must be pending by July 22, 2024. |
| Appeal filed before July 22, 2024, with condonation of delay | Eligible | Condonation must be admitted before filing declaration. |
| Appeals against intimation under Section 143(1) | Eligible | Pending as of July 22, 2024. |
| Review petitions in High Courts or Supreme Court | Ineligible | Review petitions are not equivalent to pending appeals. |
| Cases pending before ITSC or writs against ITSC orders | Ineligible | These cases are outside the scope of the scheme. |
| Appeals against penalty assessments (e.g., 271B, 271BA, etc.) | Separate settlement | Not covered automatically; must be settled independently. |
Conclusion
The Vivad Se Vishwas Scheme 2024 is a crucial step toward resolving long-standing tax disputes, offering taxpayers a chance to settle matters with the Income Tax Department efficiently. With clear eligibility criteria and structured benefits, the scheme ensures fair resolution for disputes while waiving hefty penalties and interest. Taxpayers must review their pending cases to determine if they qualify and act within the prescribed timelines to avail the benefits.
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