Vivad Se Vishwas Scheme 2024: You can settle your pending income tax litigation cases by appealing for Vivad Se Vishwas Scheme 2024. The Ministry of Finance has released new frequently asked questions (FAQ) on this scheme. “The objective of the Scheme is to, inter alia, reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers.”
“The objective of the Scheme is to, inter alia, reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process,” circular dated December 16, 2024.
Eligibility under Direct Tax Vivad Se Vishwas Scheme 2024
- Suppose a taxpayer is eligible for DTVSV Scheme, 2024 as his appeal is pending as on 22.7.2024. But subsequently, before the taxpayer could file a declaration under the DTVSV Scheme, 2024, his appeal has been disposed off on merits or dismissed as withdrawn for the purposes of the Scheme. Can such a taxpayer still file declaration under the Scheme?
Yes, such cases are eligible for settlement under the Scheme as appeal was pending as on 22.7.2024. Disputed tax will be calculated in the same manner as if appeal pending as on 22.7.2024 is yet to be disposed off.
- Suppose a taxpayer has filed a declaration in Form-I. After the declaration, the appeal has been disposed off by the concerned authority. Whether such a case is eligible for settlement?
Yes, such a case is eligible for settlement. - Time limit for filing of appeal has expired before 22nd July 2024 but an appeal along with application for condonation. of delay has been filed after 22nd July, 2024. Whether the taxpayer can opt for the Scheme in such a case?
No. Appeal has to be pending as on 22nd of July, 2024 for a taxpayer to opt for the Scheme. Thus, where an appeal along with application for condonation is filed after 22nd July, 2024, it does not tantamount to pendency of appeal as on 22nd July, 2024. Accordingly, such cases shall not be eligible. - Suppose an appeal has been filed before 22nd July, 2024 with an application for condonation of delay which is also filed before 22nd July, 2024. This appeal has been admitted by allowing condonation of delay prior to the date of filing of declaration under the Scheme. Whether such a taxpayer can opt for the Scheme?
Yes. In such cases where the appeal as well as condonation application have been filed on or before 22nd July, 2024. On admission of condonation application, such cases convert into an appeal pending on 22nd of July, 2024. Therefore, the taxpayer can opt for settlement under the Scheme in such cases.
- In the case of a search action carried out before 1.4.2021, assessments of previous years other than search year, have been made under section 153A or 153C of the Income Tax Act, 1961 (“the Act”), and assessment for the year of search has been made under section 143(3) of the Act. Whether any of these assessment orders can be covered under the DTVSV Scheme, 2024?
Ans: No. Such cases are specifically barred under section 96(a)(i) of the DTVSV Scheme, 2024.
- Whether appeal filed against intimation u/s 143(1) of the Act and pending as on 22nd July, 2024 is eligible for DTVSV Scheme, 2024?
Yes. Any appeal filed against intimation u/s 143(1) of the Act and pending as on 22nd July, 2024 is eligible for settlement under the Scheme.
- Section 248 of the IT Act relates to appeal by a person denying liability to deduct tax in certain cases. As per the provisions of this section, no appeal can be filed where tax is paid to the credit of the Central government on or after 1.4.2022. Whether an appeal filed prior to 1.4.2022 under section 248 of the Act is eligible for DTVSV Scheme, 2024?
Yes.
- Where information has been received under an agreement referred to in section 90 of the Act; however, such information has not been ‘used’ for making additions in assessment/reassessment order. In such cases, whether the assessee can opt for DTVSV Scheme, 2024?
Yes. Section 96 of the DTVSV Scheme, 2024 clearly states that the Scheme shall not apply where tax arrears relate to assessment or reassessment made on the basis of information received under section 90 or section 90A has not been used for making additions in assessment/re-assessment order, assesses can opt for the Scheme for such orders.
- Where review petitions are pending before High Courts or Supreme Courts, whether those cases are eligible for settlement under DTVSV Scheme, 2024?
No. Pendency of review petition does not tantamount to pendency of an appeal. Therefore, even if a review petition is pending as on 22nd July, 2024, it will not amount to pendency of an appeal.
- Whether DTVSV Scheme, 2024 can be availed in a case where proceedings are pending before Income Tax Settlement Commission (ITSC) or where writ has been filed against the order of ITSC?
No.
- Whether cases where the taxpayer or the department has filed declaration/application under section 158A/158AA/158AB are eligible under DTVSV Scheme, 2024?
Yes, In such cases, where declaration/application has been filed u/s 158A/158AA/158AB of the Act on or before 22nd July, 2024, the taxpayer can opt for settlement under the Scheme provided that if there is any appeal relating to the relevant year, it is also settled.
These are few FAQs that has been provided. We will keep adding more FAQs in due course of time. Its important that as honest tax payers, you understand the changes that are happening and try to stay on course.
