Budget 2024 Introduced Direct Tax Vivad se Vishwas Scheme 2024

The Union Budget 2024 was presented in the Parliament on July 23, 2024, by the Hon’ble Finance Minister Nirmala Sitharaman. Via this budget, the government proposed various changes in taxation and other sectors. Budget this year introduced Direct Tax Vivad se Vishwas Scheme 2024.

Direct Tax Vivad se Vishwas Scheme, 2024

The Income-tax Act, 1961 provides for a mechanism of filing appeals against orders passed under the proceedings of the Act, both by the taxpayer and the Department before respective appellate fora, such as Joint Commissioner of Income-tax (Appeals), Commissioner of Income-tax (Appeals), the Income-Tax Appellate Tribunal, High Courts and Hon’ble Supreme Court.

The Central Board of Direct Taxes has made every effort to resolve appeals by appellate authority under its administrative supervision as quickly as possible. One such step was the Direct Tax Vivaad Se Vishwas Act, 2020, which was implemented for appeals pending as of January 31, 2020.

The Scheme got a very encouraging response from the taxpayers and also resulted in garnering substantial revenue for the Government.

The number of cases pending at various levels has increased as a result of more cases being appealed than being resolved.

Keeping in view the success of the previous Vivaad Se Vishwas Act, 2020 and the mounting pendency of appeals at the CIT(A) level, the introduction of a Direct Tax Vivad se Vishwas Scheme, 2024 is proposed with the objective of providing a mechanism of settlement of disputed issues, thereby reducing litigation without much cost to the exchequer.

It is proposed that this Scheme take effect on the date specified by the Central Government. The final date for the Scheme is also proposed to be announced.