New Delhi [India], September 21 : In line with the announcement made by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman during the Union Budget 2024-25, the Central Board of Direct Taxes (CBDT) has officially notified the Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV, 2024).
According to the Ministry of Finance, this scheme, aimed at resolving pending income tax disputes, will come into effect from October 1. It seeks to provide an efficient framework for taxpayers to settle their outstanding appeals, streamlining the resolution process for various tax-related disputes.
It offers reduced settlement amounts for a 'new appellant' in comparison to an 'old appellant,' providing an incentive for taxpayers to engage early.
Additionally, those who file their declarations before December 31, 2024 will be eligible for further reductions, encouraging timely resolution of disputes.
The rules and forms necessary for the scheme's implementation were issued on September 20.
Four key forms have been introduced under the scheme: Form-1 for filing declarations and undertakings by the declarant, Form-2 for certificates issued by the designated authority, Form-3 for intimating payment by the declarant, and Form-4 for the final settlement order.
Under the provisions of the scheme, taxpayers will need to file Form-1 separately for each dispute. However, in cases where both the appellant and the income tax authority have filed appeals on the same order, a single Form-1 will suffice. Following payment, the declarant must submit Form-3 to notify the payment to the designated authority, along with proof of withdrawal of any appeal, writ petition, special leave petition, or claim.
To facilitate ease of use, taxpayers will need to submit Forms 1 and 3 electronically through the Income Tax Department's e-filing portal, www.incometax.gov.in. This ensures a smooth, digital-first approach, providing an accessible method for taxpayers to resolve their pending disputes.
The DTVSV Scheme, 2024 reflects the government's commitment to reducing tax litigation and encouraging prompt resolution of tax disputes.
By implementing this scheme, the government aims to ease the burden on the judicial system, reduce backlog, and create a more taxpayer-friendly environment.
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