The Direct Tax Vivad Se Vishwas (DTVSV) Scheme 2024, introduced in the Budget 2024, offers a simplified and efficient process for resolving income tax disputes. By paying the disputed amount along with a specified additional percentage, taxpayers can clear pending tax liabilities and benefit from the waiver of interest and penalties. This initiative aims to reduce litigation and streamline tax resolution, providing relief to taxpayers. To further clarify the scheme's eligibility and procedures, the Income Tax Department has issued a set of Frequently Asked Questions (FAQs).
Here are key clarifications about eligibility and processes under the DTVSV Scheme 2024:
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Can a taxpayer file a declaration under the DTVSV Scheme if their appeal was disposed of on merits or dismissed as withdrawn before filing the declaration? Yes, cases where the appeal was disposed of before filing the declaration but was still pending on July 22, 2024, are eligible for the scheme. The disputed tax will be calculated as though the appeal had not yet been disposed of as of that date.
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Is a case eligible for settlement if a taxpayer has filed a declaration in Form-I, and the appeal is disposed of after the declaration is filed? Yes, if the appeal is disposed of after the taxpayer has filed the declaration, the case remains eligible for settlement under the scheme.
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Can a taxpayer opt for the scheme if the time limit for filing an appeal expired before July 22, 2024, but an appeal with an application for condonation of delay was filed after this date? No, the appeal must be pending as of July 22, 2024, to be eligible. If the appeal was not pending on that date, such cases are not eligible for the scheme.
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Can a taxpayer opt for the scheme if an appeal and an application for condonation of delay were both filed before July 22, 2024, and the appeal was admitted after the condonation of delay, but before filing the declaration? Yes, such cases are eligible for settlement under the scheme.
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Is an appeal filed against intimation under section 143(1) of the Income Tax Act and pending as of July 22, 2024, eligible for the DTVSV Scheme 2024? Yes, any appeal filed against intimation under section 143(1) of the Act and pending as of July 22, 2024, is eligible for settlement under the scheme.
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Are cases with pending review petitions before the High Courts or Supreme Court eligible for settlement under the DTVSV Scheme 2024? No, a review petition pending before the High Courts or Supreme Court is not considered the same as an appeal. Therefore, such cases are not eligible for the scheme.
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Can the DTVSV Scheme 2024 be availed in cases where proceedings are pending before the Income Tax Settlement Commission (ITSC) or where a writ has been filed against an order of the ITSC? No, the scheme cannot be availed in cases where proceedings are pending before the Income Tax Settlement Commission (ITSC) or if a writ has been filed against the ITSC's order.
The Direct Tax Vivad Se Vishwas Scheme 2024 provides an opportunity for taxpayers to settle their income tax disputes efficiently and with minimal financial burden. By addressing these crucial eligibility questions, the Income Tax Department offers taxpayers much-needed clarity to navigate the process.
Taxpayers should carefully assess their individual circumstances and seek appropriate guidance to ensure they are eligible and fully informed about the scheme's requirements. With the right approach, this scheme can lead to faster, hassle-free resolutions of tax disputes, allowing taxpayers to close the chapter on pending tax matters and move forward with peace of mind.
