Income Tax Relief: CBDT extended Vivad Se Vishwas Scheme Deadline to January 31st:

Income Tax Relief: CBDT extended Vivad Se Vishwas Scheme Deadline to January 31st The Income Tax Department has extended the deadline for the Vivad Se Vishwas Scheme 2024, offering taxpayers another chance to resolve disputes at lower tax rates. The government extended the deadline for settling outstanding income tax appeals under the Vivad Se Vishwas Scheme by one month. The Central Board of Direct Taxes (CBDT) has announced that the deadline for determining the amount payable has been shifted from December 31, 2024 to January 31, 2025 via an official circular. The new deadline of January 31, 2025, provides much-needed relief to those currently absorbing the concept of the scheme. The extension avoids an additional 10% tax, resulting in a smoother settlement procedure.

Benefits of the Extended Deadline

The Vivad Se Vishwas Scheme, proposed in Budget 2024, enables taxpayers to resolve pending disputes by paying a reduced amount of disputed tax plus predetermined percentages. Applications received by January 31, 2025 will be subject to the lower rates listed in column (3) of the scheme's table. However, beginning February 1, 2025, applications will be subject to a 10% higher tax rate. The Vivad Se Vishwas Scheme makes dispute settlement easier by allowing taxpayers to settle issues with lower financial liability. Applications filed by January 31, 2025 will be charged at the rates shown in column (3) of the scheme's table. For example, new appellants must pay 100% of the disputed tax and 25% of the disputed penalty or interest if they file before the deadline. However, on February 1, 2025, these rates will increase to 110% and 30%, respectively.

Who can use the Vivad Se Vishwas Scheme?

The Vivad Se Vishwas Scheme, 2024, is applicable to cases where an appeal has been filed with the Commissioner (Appeals), Dispute Resolution Panel (DRP), Income Tax Appellate Tribunal (ITAT), High Court, or Supreme Court.

A Window of Opportunity

The extension reflects the government's proactive approach to ease tax compliance and dispute settlement. Taxpayers are encouraged to take advantage of this opportunity to resolve disputes, save additional taxes, and contribute to a transparent, litigation-free tax system. For Official Circular Download PDF Given Below: