Introduction of the second edition of the Direct Tax Vivad Se Vishwas Scheme 2024 (VSV 2.0) announced by the Finance Ministry w.e.f. 1st October 2024.
Reetu | Sep 23, 2024 |
Key Points to Know about Income Tax Amnesty Scheme 2024
The Finance Ministry announced the introduction of the second edition of the Direct Tax Vivad Se Vishwas Scheme 2024 (DTVSV Scheme, 2024) or Income Tax Amnesty Scheme 2024 for settlement of pending litigations, which will take effect on October 1, 2024.
This scheme aims to settle ongoing income tax disputes, building on the success of its predecessor.
According to a ministry notification, the Vivad Se Vishwas Scheme 2024 will enable taxpayers and the Income Tax Department to address disputes more quickly.
In her budget speech, Finance Minister Nirmala Sitharaman emphasized the scheme’s significance, stating that it will provide a method for submitting appeals to a number of appellate bodies, including the Joint Commissioner of Income-tax (Appeals), the Income Tax Appellate Tribunal (ITAT), and higher courts.
Key Highlights of Vivad Se Vishwas Scheme 2024
The Vivad Se Vishwas Scheme 2024 shall come into force with effect from 1st Oct. 2024.
The DTVSV Scheme, 2024 was enacted vide Finance (No. 2) Act, 2024. Further, the Rules and Forms for enabling the Scheme have also been notified vide Notification No. 104/2024 in G.S.R 584(E) dated 20.09.2024.
The DTVSV Scheme provides for lesser settlement amounts for a ‘new appellant’ in comparison to an ‘old appellant’. The DTVSV Scheme also provides for lower settlement amounts for taxpayers who file their declarations on or before December 31, 2024, as compared to those who file later.
Four separate Forms have been notified for the purposes of the DTVSV Scheme. These are as under:
1. Form-1: Form for filing declaration and Undertaking by the declarant.
2. Form-2: Form for Certificate to be issued by Designated Authority.
3. Form-3: Form for Intimation of payment by the declarant.
4. Form-4: Order for Full and Final Settlement of tax arrears by Designated Authority.
The DTVSV Scheme also provides that Form-1 shall be filed separately for each dispute provided that where the appellant and the income-tax authority, both have filed an appeal in respect of the same order, a single Form-1 shall be filed in such a case.
The intimation of payment is to be made in Form-3 and is to be furnished to the Designated Authority along with proof of withdrawal of appeal, objection, application, writ petition, special leave petition, or claim.
Forms 1 and 3 must be submitted electronically by the declarant. These forms will be made available through the Income Tax Department’s e-filing portal.
For details provisions on the DTVSV Scheme, 2024, see sections 88 to 99 of the Finance (No. 2) Act, 2024, as well as the Direct Tax Vivad Se Vishwas Rules, 2024.
To Read Notification – Click Here
To Read DTVSV Scheme Rules – Click Here
To Read Finance Act 2024 – Click Here
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