CBDT notifies Direct Tax Vivad se Vishwas Rules 2024

The Central Board of Direct Taxes (CBDT) has notified Direct Tax Vivad se Vishwas Rules 2024 via issuing a Notification.

The Finance Ministry announced the introduction of the second edition of the Direct Tax Vivad Se Vishwas Scheme 2024 (VSV 2.0), which will take effect on October 1, 2024.

The Notification Read as follows:

In exercise of the powers conferred by section 99 of the Finance (No. 2) Act, 2024 (15 of 2024), the Central Government hereby makes the following rules.

These rules may be called the Direct Tax Vivad se Vishwas Rules, 2024. They shall come into force on the date of their publication in the Official Gazette.

Definition

(1) In these rules, unless the context otherwise requires,–

(a) “Act” means the Finance (No.2) Act, 2024 (15 of 2024);

(b) “Dispute” means appeal, writ or special leave petition filed by the declarant or the income-tax authority before the Appellate Forum, or objections filed before the Dispute Resolution Panel under section 144C of the Income Tax Act, 1961 (43 of 1961) and the Dispute Resolution Panel has not issued any direction, or Dispute Resolution Panel has issued a direction under sub-section (5) of section 144C of the said Act and the Assessing Officer has not completed the assessment under sub-section (13) of that section, or application filed under section 264 of the said Act;

(c) “Form” means the Forms annexed to these rules;

(d) “issues covered in favour of the declarant” means issues in respect of which –

(i) An appeal or writ or special leave petition is filed by the income-tax authority before the appellate forum; or

(ii) an appeal is filed before the Commissioner (Appeals) or the Joint Commissioner (Appeals), or objections are filed before the Dispute Resolution Panel, by the declarant, on which he has already got a decision in his favour from the Income Tax Appellate Tribunal (where the decision on such issue is not reversed by the High Court or the Supreme Court) or the High Court (where the decision on such the issue is not reversed by the Supreme Court); or

(iii) an appeal is filed by the declarant before the Income Tax Appellate Tribunal on which he has already got a decision in his favour from the High Court (where the decision on such issue is not reversed by the Supreme Court);

(e) “new appellant case” means any case other than an “old appellant case” where the declarant is an appellant after the 31st January 2020 but on or before the specified date;

(f) “old appellant case” means where the declarant is an appellant on or before the 31st January 2020, in respect of any tax arrear and continues to be an appellant at the same appellate forum on the specified date in respect of such tax arrear; and

(g) “section” means a section of the Finance (No. 2) Act, 2024 (15 of 2024) as included in Chapter IV of the said Act.

(2) the words and expressions used in these rules and not defined but defined in the Act or the Income-tax Act, 1961, shall have the meanings respectively assigned to them in those Acts.

Amount Payable by Declarant

(1) Where a declarant files a declaration to the designated authority under sub-section (1) of section 91 of the Act, on or before the 31st December 2024, the amount payable by the declarant under the Act shall be as mentioned in column (3) of the Table specified in section 90 of the Act, subject to the conditions as provided in the First, Second and Third provisos of the said Table.

(2) Where a declarant files a declaration to the Designated Authority under sub-section (1) of section 91 of the Act, on or after the 1st January 2025 but on or before the last date, the amount payable by the declarant under the Act shall be as provided in column (4) of the Table specified in section 90 of the Act, subject to the conditions as provided in the First, Second and Third provisos of the said Table.

(3) Where the dispute includes issues covered in favour of the declarant, the disputed tax in respect of such issues shall be the amount, which bears to tax, including surcharge and cess, payable on all the issues in dispute, the same proportion as the disputed income in relation to issues covered in favour of declarant bears to the disputed income in relation to all the issues in dispute.

Form of Declaration and Undertaking

(1) The declaration for any dispute referred to in sub-section (1) of section 91 and the undertaking referred to in sub-section (4) of the said section shall be made in Form-1 to the designated authority and shall be filed separately in respect of each order:

Provided that where the appellant and the income-tax authority have both filed an appeal or writ petition or special leave petition in respect of the same order, a single Form-1 shall be filed by the appellant.

(2) The declaration and the undertaking under sub-rule (1) shall be verified by the declarant or any person competent to verify the return of income on his behalf in accordance with section 140 of the Income-tax Act, 1961 (43 of 1961).

(3) The designated authority, on receipt of the declaration, shall issue a receipt electronically in acknowledgement thereof.

Form of Certificate by Designated Authority

The Designated Authority shall issue a certificate referred to in sub-section (1) of section 92 electronically in Form-2.

Intimation of Payment

The intimation of payment as referred to in sub-section (2) of section 92, made pursuant to the certificate issued by the designated authority shall be furnished along with proof of withdrawal of the appeal, objection, application, writ petition, special leave petition, or claim filed by the declarant to the designated authority in Form-3.

Order by Designated Authority

The order by the designated authority under sub-section (2) of section 92, in respect of payment of amount payable by the declarant as per certificate issued under sub-section (1) of section 92, shall be in Form-4.

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