The Income Tax Department has issued frequently asked questions (FAQs) regarding the ‘Vivaad se Vishwas’ Scheme 2024, in which answers to important questions have been given.
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 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 is notified with effect from October 1, 2024. The expiry date of the scheme has not yet been notified.
If you are a taxpayer and your disputes or appeals are pending before the Supreme Court, High Court, Income Tax Appellate Tribunal, or Commissioner/Joint Commissioner (Appeals) till July 22, 2024, then this information can be extremely beneficial for you.
Under this scheme, writs and special leave petitions are also covered, whether they are filed by you or tax officials.
So, if you want to take advantage of this opportunity, do not ignore it. With the right information and timely action, you can resolve your dispute.
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 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, the taxpayer will have to pay 110 percent of the disputed tax demand. Let us tell you that in the General Budget 2024, the government had 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.
