The Income Tax Department on Saturday said it has notified dispute resolution scheme Vivad Se Vishwas scheme 2.0 that provides for lesser settlement amounts for taxpayers who file declaration on or before December 31, 2024, in comparison to those who file thereafter.
Finance Minister Nirmala Sitharaman in her budget speech, announced the Direct Tax Vivad Se Vishwas Scheme 2024 to resolve pending appeals in the case of income tax disputes. The scheme shall come into force with effect from October 1, 2024. Further, the Rules and Forms for enabling the Scheme have also been notified.
The Scheme provides for lesser settlement amounts for a ‘new appellant’ in comparison to an ‘old appellant’. The Scheme also provides for lesser settlement amounts for taxpayers who file declaration on or before 31.12.2024 in comparison to those who file thereafter, the Central Board of Direct Taxes (CBDT) said in a statement.
Four separate Forms have been notified – Form-1: Form for filing declaration and Undertaking by the declarant, Form-2: Form for Certificate to be issued by Designated Authority, Form-3: Form for Intimation of payment by the declarant and Form- 4: Order for Full and Final Settlement of tax arrears by Designated Authority.
The Scheme also provides that Form-1 shall be filed separately for each dispute provided that where the appellant and the income-tax authority, both have filed an appeal in respect of the same order, single Form-1 shall be filed in such a case.
The intimation of payment is to be made in Form-3 and is to be furnished to the Designated Authority along with proof of withdrawal of appeal, objection, application, writ petition, special leave petition, or claim. Forms 1 and 3 shall be furnished electronically by the declarant.
These Forms will be made available on the e-filing portal of Income Tax Department. The scheme is a step towards litigation management.
Around 2.7 crore direct tax demands totaling about Rs 35 lakh crore are being disputed at various legal foras. Deloitte India Partner Karishma R. Phatarphekar said with tax payment rates under the Vivad Se Vishwas 2.0 scheme set to increase by 10 per cent starting January 1, 2025, it is crucial for companies to evaluate their pending income tax litigations from both a cost-benefit. viewpoint and a broader non-tax perspective.
The Rules and Forms for VSV 2.0 are also announced. Given the limited time window, an informed decision on opting for the scheme should be made promptly.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 21, 2024 | 3:54 PM IST
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