Are you dealing with income tax disputes? The Direct Tax Vivad se Vishwas Scheme, 2024 (DTVsV Scheme, 2024) can help. It’s a way to settle your tax disputes and save time and money. But, how do you apply for it?
Find out how to apply for Vivad Se Vishwas Scheme 2024. This guide will help you navigate the process. It will also help you take control of your tax situation.
Introduction to Vivad Se Vishwas Scheme 2024
The Vivad Se Vishwas Scheme 2024 is a new tax amnesty plan by the Government of India. It’s also known as the Direct Tax Vivad Se Vishwas Act, 2024. This plan aims to make it easier and faster to solve income tax disputes. It also helps the government get more money and makes things easier for businesses.
Objectives of the Scheme
The main goals of the Vivad Se Vishwas Scheme 2024 are to:
- Clear up the big backlog of income tax cases in the country
- Give taxpayers a chance to settle their tax disputes and get closure
- Help the government get money on time by encouraging taxpayers to settle disputes
- Make it easier to do business and create a friendlier environment for taxpayers
Key Features of the Scheme
The Vivad Se Vishwas Scheme 2024 has some great features for taxpayers:
- A fast process to settle disputes with a deadline for filing declarations
- No interest or penalties for those who join the scheme
- A simple way to solve disputes, giving taxpayers one chance to resolve them
- Covers many types of tax disputes, like appeals and special leave petitions
- Gets a certificate from the authority that confirms the tax arrears are settled
The scheme was made through the Finance (No. 2) Act, 2024. The rules and forms for it were announced on September 20, 2024. The Central Board of Direct Taxes (CBDT) also made a detailed Guidance Note with FAQs to help taxpayers understand the scheme.
Eligibility Criteria for Vivad Se Vishwas Scheme 2024
The Direct Tax Vivad Se Vishwas Scheme 2024 (VsV 2.0) is a new way to solve tax disputes in India. It makes settling income tax disputes easier and faster. To qualify for VsV 2.0, taxpayers need to meet certain rules set by the government.
Types of Tax Disputes Covered
The VsV 2.0 scheme helps with many tax disputes. These include:
- Pending appeals before various appellate forums, such as the Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), High Courts, and the Supreme Court.
- Writ petitions and special leave petitions filed in High Courts and the Supreme Court.
- Objections pending before the Dispute Resolution Panel (DRP).
- Revision applications under section 264 of the Income-tax Act.
Excluded Cases from the Scheme
But, VsV 2.0 doesn’t cover all tax disputes. Some cases are not included. These are:
- Assessments based on search and seizure operations.
- Prosecutions instituted before the declaration under the scheme is filed.
- Cases related to undisclosed foreign income or assets.
- Assessments based on information received under international agreements.
- Cases involving the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA), the Unlawful Activities (Prevention) Act (UAPA), the Narcotic Drugs and Psychotropic Substances Act (NDPS Act), the Prevention of Bribery of Public Servants Act (PBPT Act), the Prevention of Corruption Act (PC Act), and the Prevention of Money Laundering Act (PMLA).
By clearly stating what disputes are covered and what are not, VsV 2.0 helps taxpayers understand their options. This makes the dispute resolution process clearer.
Benefits of Opting for Vivad Se Vishwas Scheme 2024
The Direct Tax Vivad Se Vishwas Scheme 2024 helps taxpayers settle tax disputes quickly. It saves time, money, and resources that would go to court battles.
Choosing the Vivad Se Vishwas Scheme 2024 means no interest or penalties. Taxpayers pay only the disputed tax amount. This can save a lot of money, making it a good choice for those in tax litigation settlement.
This scheme also ends retrospective tax amendment settlement disputes for sure. It stops long legal fights, letting taxpayers focus on their business.
The scheme makes resolving disputes easier and faster. This helps improve business conditions in India. Taxpayers can now handle their tax issues more efficiently.
“The Vivad Se Vishwas Scheme 2024 is a game-changer for taxpayers, offering a unique opportunity to settle long-standing tax disputes with minimal hassle and maximum benefits.”
By choosing the Vivad Se Vishwas Scheme 2024, taxpayers get many benefits. They save on legal costs, improve cash flow, and start fresh with their taxes. This scheme helps taxpayers manage their taxes better and makes the Indian tax system more efficient.
Amount Payable Under Vivad Se Vishwas Scheme 2024
The Vivad Se Vishwas Scheme 2024 has different amounts based on the tax arrears and when you declare. It offers flexible payment plans for those with tax arrears payment plan or income tax dispute resolution scheme issues.
Computation of Amount Payable
For declarations before December 31, 2024, you pay:
- 100% of the disputed tax for new appellants
- 110% of the disputed tax for old appellants
For disputed interest, penalty, or fees, you pay:
- 25% for new appellants
- 30% for old appellants
After January 1, 2025, the amounts go up. There are special rules for cases where tax authorities appeal or if there’s a favorable decision from a higher court.
Reduced Payment for Early Declaration
Declaring early can lower your payment. The scheme rewards early declarations with a smaller tax liability. This helps taxpayers clear their tax arrears payment plan and aids the government in reducing income tax dispute resolution scheme backlogs.
“The Vivad Se Vishwas Scheme 2024 provides a valuable opportunity for taxpayers to settle their outstanding disputes and move forward with their business operations.”
Step-by-Step Guide: how to apply for vivad se vishwas scheme 2024
The Vivad se Vishwas Scheme 2024 makes it easier for taxpayers to settle income tax disputes. It has a simple process with four main steps. These steps help taxpayers get the most out of this scheme.
Filing of Declaration and Undertaking (Form-1)
The first step is to fill out Form-1 online on the e-filing portal. You need to give your Permanent Account Number (PAN) and a digital signature or electronic verification code. This is to complete the form.
Issuance of Certificate by Designated Authority (Form-2)
After you submit Form-1, you’ll get Form-2 from the Designated Authority within 15 days. This certificate shows how much you need to pay to settle the dispute under the Vivad se Vishwas Scheme 2024.
Payment of Amount and Intimation (Form-3)
When you get the Certificate (Form-2), you must pay the amount within 15 days. Then, you need to submit Form-3 to the Designated Authority.
Final Settlement Order by Designated Authority (Form-4)
After you make the payment, the Designated Authority will give you Form-4. This is the Final Settlement Order. It officially ends the dispute resolution process under the Vivad se Vishwas Scheme 2024.
By following these steps, taxpayers can apply for the how to apply for vivad se vishwas scheme 2024. They can also enjoy the benefits of the income tax dispute resolution scheme.
Documents Required for Vivad Se Vishwas Scheme 2024 Application
The Indian government has introduced the Vivad Se Vishwas Scheme 2024. It simplifies settling tax disputes for taxpayers. To apply, you must provide certain documents to the authority. These include:
- A valid PAN (Permanent Account Number) registered on the e-Filing portal
- A digital signature certificate (if required for income tax return filing) or an electronic verification code
- Details such as the Appeal Reference Number, the nature of tax arrears, and information about the disputed order
- Proof of withdrawal of pending appeals, objections, or petitions when submitting Form-3 for payment intimation
The Vivad se Vishwas Scheme 2024 makes settling tax disputes easier. By submitting the right documents, applicants can enjoy benefits like no interest or penalty. This helps resolve tax issues quickly.
| Key Statistics | Value |
|---|---|
| Tax Savings Under the Scheme | ₹2,500 Crore |
| Scheme Applicability | From October 1, 2024 |
| Designated Forms | Form 1, Form 2, Form 3, and Form 4 |
| Amount Payable Reduction | Up to 50% |
| Payment Deadline | Within 15 Days of Receiving Certificate |
Understanding the tax dispute settlement procedure and needed documents helps taxpayers. They can use the Vivad Se Vishwas Scheme 2024 to settle disputes. This way, they can enjoy the government’s benefits.
Timelines and Deadlines for Vivad Se Vishwas Scheme 2024
The Direct Tax Vivad se Vishwas Scheme, 2024, was announced by the Government of India on September 20, 2024. It aims to settle income tax disputes. It starts on October 1, 2024, and has strict timelines for benefits.
Last Date for Filing Declaration
To join the last date for vivad se vishwas scheme 2024, file Form-1 by December 31, 2024. This is key because the scheme’s rates increase after this date.
Time Limit for Payment of Amount
After filing, you get Form-2 within 15 days. Pay the amount within 15 days of getting Form-2 and submit Form-3. This ensures you get the most from the tax amnesty scheme 2024.
The CBDT Circular No. 12/2024, from October 15, 2024, explains the scheme’s details. It covers appeals up to July 22, 2024, and lists the necessary forms.
Following the scheme’s timelines helps taxpayers settle disputes. It also supports the government’s goal to reduce tax disputes and make business easier.
Impact of Vivad Se Vishwas Scheme 2024 on Pending Litigation
The Vivad Se Vishwas Scheme 2024 is changing how India handles tax disputes. It requires taxpayers to withdraw all appeals and petitions. This includes those at the Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), High Courts, and the Supreme Court.
Withdrawal of Appeals and Writ Petitions
Those who choose the Vivad Se Vishwas Scheme 2024 must pull back all their appeals and writ petitions. This is a must for settling tax arrears. After completing the scheme and getting the Final Settlement Order (Form-4), all proceedings end.
Effect on Pending Proceedings
The Vivad Se Vishwas Scheme 2024 also affects ongoing assessments and appeals. Once the taxpayer’s declaration is accepted and the Final Settlement Order is issued, these proceedings stop. Disputes are then seen as resolved.
The scheme offers a quick and easy way to settle tax disputes. It helps taxpayers clear their tax arrears settlement scheme and income tax appeals amnesty without long legal battles. This move is expected to cut down the number of direct tax cases and boost tax compliance.
| Key Statistics | Percentage |
|---|---|
| Percentage of disputed tax, interest, or fee payable under the scheme for new appellants on or before December 31, 2024 | 25% |
| Percentage of disputed tax, interest, or fee payable under the scheme for new appellants on or after January 1, 2025 but before the last date | 30% |
| Percentage of disputed tax, interest, or fee payable under the scheme for old appellants on or before December 31, 2024 | 30% |
| Percentage of disputed tax, interest, or fee payable under the scheme for old appellants on or after January 1, 2025 but before the last date | 35% |
The Vivad Se Vishwas Scheme 2024 is a big step towards solving India’s tax dispute problem. It creates a better environment for taxpayers and the government to find peaceful solutions and move forward.
Conclusion
The Direct Tax Vivad se Vishwas Scheme, 2024, is a big chance for taxpayers in India. It helps solve long tax disputes quickly. The scheme makes the process easier, offers payment plans, and clears up what’s needed to settle.
It aims to lessen the load of tax fights on everyone. This helps both taxpayers and the courts. It’s a step towards making business easier and boosting the economy.
Starting October 1, 2024, those with tax appeals can use this scheme. It’s for those with appeals as of July 22, 2024. This is a great chance for taxpayers to settle their tax issues.
