Income Tax: Final Opportunity To Resolve Tax Disputes Via Vivad Se Vishwas Scheme 2024

The Vivad Se Vishwas Scheme 2024 is nearing its deadline of 31st December 2025. Taxpayers who have unresolved tax problems are encouraged to act quickly in order to take advantage of this initiative. This scheme, introduced in the Union Budget 2024, offers taxpayers a chance to settle tax disputes by paying only a portion of the disputed amount, with penalties and interest waived. It provides a cost-effective way to clear outstanding liabilities while helping reduce litigation.

Income Tax India: Last Chance to Resolve Disputes

Income Tax India’s official tweet reminds taxpayers to submit their declarations by December 31, 2024.

Key Highlights of the Scheme

Eligibility Criteria: The scheme is applicable to taxpayers with appeals, writ petitions, or special leave petitions pending as of July 22, 2024. This includes instances in which objections were submitted to the Dispute Determination Panel (DRP) prior to this date and are still pending determination. Also, it covers situations where the DRP issued directions, but the assessment remains incomplete as of July 22, 2024, and revision applications under Section 264 of the Income Tax Act are pending as of this date.

Settlement Amounts: Taxpayers who file their declarations on or before December 31, 2024 will pay a lower amount for dispute resolution. After this date, settlement amounts will increase.

How to Apply?

The Direct Tax Vivad Se Vishwas Scheme 2024 offers taxpayers a streamlined process to resolve pending tax disputes. To participate, the following forms are required:

1. Form-1: Declaration and Undertaking by the Declarant

2. Form-2: Certificate to be issued by the Designated Authority

3. Form-3: Intimation of Payment by the Declarant

4. Form-4: Order for Full and Final Settlement of Tax Arrears by Designated Authority

Forms 1 and 3 must be submitted electronically via the Income Tax Department’s e-filing portal.

The lower settlement rates will not be available to taxpayers who file their applications after December 31, 2024, so it is imperative that they take action quickly to prevent further financial strains and guarantee a seamless conclusion.