The Direct Tax Vivaad se Vishwas Scheme, 2024’s original regulations required taxpayers to pay 100% of the contested tax demand if they filed a statement by December 31, 2024. In these situations, interest and penalties are waived.
The deadline for submitting information to determine tax obligations and to waive interest and penalties under the Dispute to Vishwas initiative was extended by the Income Tax Department on Monday to January 31. The deadline for calculating the amount owed under the Dispute to Vishwas scheme has been extended from December 31, 2024, to January 31, 2025, according to a circular issued by the Central Board of Direct Taxes (CBDT), as reported by PTI news.
A clause that waives interest and penalties
According to the report, taxpayers who file a declaration before December 31, 2024, are required to pay 100% of the disputed tax demand in accordance with the initial guidelines of the Direct Tax Dispute to Vishwas Scheme, 2024. In these situations, interest and penalties are waived. The Government of India (GOI) is attempting to resolve outstanding direct tax complaints through the Dispute to Vishwas (program). The Vivaad se Vishwas plan enables taxpayers to devote time and resources to operating businesses while also resolving long-standing direct tax difficulties.
The taxpayer will then be required to pay 110 percent
The circular states that the taxpayer will be responsible for paying 110 percent of the contested tax demand on disclosures made on or after February 1, 2025. This program is available to taxpayers whose cases are under dispute or have an appeal pending. This covers requests for special leave (appeals) and writs, whether they were submitted by the tax officers or the taxpayer. This covers matters that are still pending until July 22, 2024, before the Supreme Court, High Court, Income Tax Appellate Tribunal, and Commissioner/Joint Commissioner (Appeal).
There is a dispute over numerous direct tax demands
Let us inform you that there are approximately 2.7 crore direct tax requests totaling approximately Rs 35 lakh crore that are being contested on a number of court forums. The July 23 presentation of the budget for the fiscal year 2024–2025 included an announcement of the Vivaad se Vishwas Scheme, 2024. The plan became operative on October 1, 2024.
