Vivad Se Vishwas Scheme 2024: CBDT releases 2nd set of FAQs to Remove Taxpayer Misconceptions

To address the issues between taxpayers and the Income Tax (I-T) Department at a faster pace, the Ministry of Finance had come up with the Vivad Se Vishwas Scheme 2024 in October. After the scheme began, many taxpayers had doubts about how it works. To make things clear, the Income Tax Department posted a list of simple FAQs on its website.

Here’s a quick look at some common questions about the Direct Tax Vivad Se Vishwas (DTVSV) Scheme 2024:

Can Dismissed or Closed Appeals Be Settled?

Yes, taxpayers can use the scheme even if their appeals were dismissed or closed before applying. However, the appeal must have been pending on July 22, 2024, to qualify. The disputed tax will be calculated as if the appeal was still pending on that date.

Appeals Already Resolved at Time of Application for Scheme

If the appeal is settled subsequent to the applicant filing the scheme, it is still eligible for settlement under Vivad Se Vishwas Scheme.

Appeals Filed After July 22, 2024

Cases where the time period to file an appeal ended prior to July 22, 2024 and where the appeal was made subsequently with an application for condonation of delay are not covered. The appeal should have been pending on the date set by the Court to fall under this category.

Appeals Where Delay Condoned Before Application

If a taxpayer filed an appeal before July 22, 2024, and the delay in filing was accepted, they can still use the scheme to settle their case.

Appeals Against Intimations Under Section 143(1)

Appeals regarding notices (issued under Section 143(1) of Income Tax Act) can be resolved if they were pending on July 22, 2024. These notices represent fundamental review of taxpayers income tax return for financial year; however, they are essential in making sure compliance. Although process may seem straightforward, it requires attention to detail because various factors can influence outcome. This is crucial for maintaining accuracy in financial reporting.

Review Petitions in High Courts or Supreme Court

The scheme does not include cases where review petitions are pending before the High Courts or the Supreme Court. Such cases are excluded as they do not qualify as appeals under the provisions of the scheme.

Proceedings Before Income Tax Settlement Commission (ITSC)

The Vivad Se Vishwas Scheme does not include taxpayers whose cases are pending before the Income Tax Settlement Commission (ITSC).

The FAQs are intended to address the concerns of taxpayers and make the scheme implementation smoother, which is supposed to reduce litigation and foster a more efficient tax resolution process.

Here is link to Download the complete Circular