Tax Alert: Vivad Se Vishwas Scheme 2024 Deadline Extended

In an important move to provide relief to taxpayers, the Central Board of Direct Taxes (CBDT) has extended the deadline for assessing payable amounts under the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024. Taxpayers now have only 10 days to make their declarations under favourable terms.

Originally scheduled to close on December 31, 2024, the amended due date is January 31, 2025. Declarations filed on or before January 31, 2025 will be subject to the lower rates and for declarations made on or after February 1, 2025, higher rates will be applicable, that would be additional 10% tax.

The scheme, which was announced in Budget 2024, aims to settle pending income tax dispute cases by waiving interest and penalties if the taxpayer pays the disputed amount of income tax.

All disputes (with few exceptions) involving tax, penalties, interest, fees, TDS, or TCS will be covered.

Who are eligible for Direct Tax Vivad Se Vishwas Scheme 2024?

• The appeal/writ was filed on or before July 22, 2024, and is still pending on July 22, 2024.
• Taxpayer who filed objections before the Dispute Resolution Panel (DRP), but the DRP did not give any directions on or before July 22, 2024.
• Taxpayer in whose case the DRP issued a direction but the Assessing Officer did not complete the assessment by July 22, 2024.
• Taxpayer who has made an application for revision under Section 264 of the Act, which is still pending as on July 22, 2024.

Individuals and organisations facing tax disputes are encouraged to act quickly. Tax professionals and chartered accountants are also required to help their clients maximise this opportunity.

For more information, visit the official Income Tax Department portal or seek advice from authorised representatives and tax advisors.

The CBDT has emphasised the necessity of meeting this new deadline to avoid increasing financial liabilities, noting, “File your declaration under the scheme on or before 31.01.2025 to pay a lower amount for settlement of appeal. The amount of the settlement increases when a declaration is filed on or after February 1, 2025.

For Official Notification Download PDF Given Below: