Vivad Se Vishwas Scheme: Here Is What You Need To Know

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Central Board of Direct Taxes (CBDT) notification

CBDT issued a gazette notification on January 20, 2025, which explained four difficulties in implementing the Direct Tax – Vivad Se Vishwas Scheme (DTVSV).

Direct Tax – Vivad Se Vishwas Scheme (DTVSV)

This scheme deals with the income tax litigations that were pending before different appellate authorities including the Supreme Court as on July 22, 2024.

Tax disputes

This scheme is an effort to reduce the backlog of tax disputes and permit taxpayers to resolve disputes by paying just the disputed tax amount, without any additional interest or penalties.

Aim

The scheme aims to settle outstanding tax demands of up to Rs 25,000 for cases related to the period until 2009-10, and Rs 10,000 for cases between 2010-11 and 2014-15.

Challenges and removing difficulties

Four challenges that were mentioned by CBDT include when the order is passed for a person on or before July 22, 2024. In the case of such a person, the aforesaid appeal shall be considered as pending as of the 22nd day of July 2024 for the purposes of the said scheme.

Continued

When the appeal against such an order is filed after July 22, 2024, but within the allowed time frame for filing the appeal, then it becomes a challenge. In such a case, disputed tax shall be calculated on the basis of such appeal.  

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