Direct Tax Vivad se Vishwas Scheme 2024: What is the Dispute to Trust Scheme? How can taxpayers resolve old Income Tax related issues, know everything

Direct Tax Vivad se Vishwas Scheme 2024: Vivad se Vishwas Scheme has come into effect from Monday, October 1, 2024. The government has started this scheme to speed up the settlement of pending cases related to direct tax disputes.

Vivad Se Vishwas Scheme 2024 Income Tax: This scheme has been brought to end the old income tax disputes of taxpayers. 

Vivad Se Vishwas Scheme 2024: Union Finance Minister Nirmala Sitharaman had announced in the Union Budget 2024 speech that the central government will soon come up with a scheme to settle income tax related matters. The Central Board of Direct Taxes (CBDT) has now officially announced the Direct Tax Vivad Se Vishwas Scheme for this. This scheme has been brought to end the old income tax disputes of taxpayers. 

The Dispute to Trust Scheme has come into effect from Monday, October 1, 2024. The government has started this scheme to quickly settle pending cases related to direct tax disputes. The purpose of this scheme is to quickly settle old income tax cases. 

In a statement from the Income Tax Department, it was said that Vivaad se Vishwas Scheme 2.0 (VSV 2.0) has been announced to settle pending cases related to direct tax. Under this scheme, taxpayers in the country who file declaration on or before 31 December 2024 will have to pay less settlement amount than those who file declaration after this date. 

Who can avail the benefit of the scheme?

Every person whose case is pending regarding income tax dues can take advantage of the Dispute to Trust Scheme 2024. However, those who are facing serious income tax cases like undeclared income abroad cannot take advantage of this scheme.

The Central Board of Direct Taxes (CBDT) has implemented the Direct Tax Dispute to Vishwas Scheme under the Finance No. 2 Act, 2024. During this, the rules related to the scheme have also been implemented. 4 different forms have been given for the Dispute to Vishwas Scheme.

Form-1

In Form-1 you will file the declaration and also give the undertaking (Form for filing declaration and Undertaking by the declarant)

Form-2

Form-2 will be for Certificate to be issued by Designated Authority

Form-3

Form for intimation of payment by the declarant under Form-3

Form-4

Form 4 will contain information regarding the full and final settlement of tax arrears by the authority (Order for Full and Final Settlement of tax arrears by Designated Authority)

Benefit of lower settlement amount

The special thing about CBDT's Direct Tax Dispute to Vishwas Scheme is that the settlement amount of the new appellant will be less than that of the old appellant. Under this scheme, such taxpayers will also get the benefit of lower settlement amount, who will file the declaration on or before 31 December 2024.

Direct tax related matters will be resolved

The Direct Tax Vivaad se Vishwas Scheme also provides that Form 1 will be filed separately for each dispute. The payment details will have to be given in Form-3 and submitted to the designated authority along with the appeal, objection, application, writ petition, special leave petition or proof of withdrawal of claim. Form 1 and Form 3 will be submitted online by the declarant. These forms will be made available on the e-filing portal of the Income Tax Department i.e. www.incometax.gov.in.

For your information, let us tell you that about 2.7 crore tax dispute cases are pending on different legal platforms. The monetary value of tax related to these cases is about Rs 35 lakh crore.