Summary: The Hon’ble Finance Minister has introduced the “Direct Taxes Vivad Se Vishwas Scheme, 2024” in the Budget 2024 to resolve income tax disputes efficiently. Effective dates will be notified soon. The scheme is applicable to individuals defined under Section 89, including those with pending appeals before appellate authorities, Dispute Resolution Panel objections, or applications for revision under Section 264. Disputes involving tax, fee, interest, or penalties are eligible for the scheme, and taxpayers must file declarations with designated authorities. Payments must be made within 15 days of receiving a certificate from the tax department. The scheme offers immunity from further proceedings for the specific cases declared. Multiple declarations can be filed for different cases. Exclusions apply to certain categories, such as cases involving search and seizure, foreign income, or prosecutions under various Acts. Specific payment percentages apply based on the timing and nature of the tax arrear. Detailed rules and instructions will be issued by the CBDT following Presidential assent to the Budget proposals.
The Hon’ble Finance Minister Has Presented “Direct Taxes Vivad Se Vishwas Scheme, 2024” In the Budget 2024. To Make the Scheme Clear to The Common Person, It Has Been Endeavoured to Present a Simplified Summary Thereof in The Annotated Form Hereunder: –
| SL. NO. | QUESTION | SIMPLIED DETAILS / ANSWER | REMARKS |
| `. | NAME OF THE SCHEME | DIRECT TAXES VIVAD SE VISHWAS SCHEME 2024 | – |
| 2 | DATE OF PRESENTATION | BUDGET 2024 PRESENTED ON 23RD JULY 2024 | – |
| 3. | DATE OF EFFECTIVENESS | TO BE NOTIFIED BY THE GOVT. | IT WILL BE NOTIFIED SHORTLY IN THE GAZETTEE |
| 4 | WHO CAN APPLY | ANY PERSON AS DEFINED IN SECTION 89. | PLEASE SEE NEXT COLUMN |
| 5 | WHO IS APPELLANT | 1)a person, who is a party in the appeal either filed by him or department, and such appeal is pending before the appellate authority.
2) a person who has filed his objections before the Dispute Resolution Panel under section 144C of the Income-tax Act and the Dispute Resolution Panel has not issued any direction on or before the specified date. 3) a person in whose case the Dispute Resolution Panel has issued direction under sub-section (5) of section 144C of the Income-tax Act and the Assessing Officer has not completed the assessment under sub- section (13) of that section on or before the specified date; or (4) a person who has filed an application for revision under section 264 of the Income-tax Act and such application is pending as on the specified date;
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HERE THE SPECIFIED DATE MEANS 22ND JULY 2024. |
| 6. | THE NATURE OF THE DISPUTE OR THE AMOUNT FOR WHICH THE DECLARATION UNDER THE SCHEME CAN BE FILED | (1) The disputed tax, fee, interest or penalty can be subject matter of declaration. | Here the disputed tax includes the Tax, Surcharge and Cess payable. Further, the dispute amount means the amount of tax, interest, penalty etc., which is not admitted by the taxpayer / assessee. |
| 7. | The amount of tax, interest and penalty required to be deposited. | As per Table below. | Please note that the scheme lays down the disputed amount / percentage thereof to be deposited till 31.12.2024 or thereafter till the specified date of closure of scheme.
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| 8. | Where and with whom to file declaration | With the Designated authority to be specified for a particular jurisdiction. | The designated authority has to be at least of the rank of Commissioner of Income Tax to be notified. |
| 9. | How to file the declaration | The CBDT shall notify the detailed rules and instructions in this behalf. This is likely after the Budget proposals receive the assent of the President of India. | |
| 10. | How and when to deposit the amount due as per Scheme | The Department shall issue a certificate within 15 days of the receipt of the declaration under the scheme from the taxpayer. The taxpayer will have to pay the amount within next 15 days. | |
| 11. | Benefit of declaration | All the proceedings against the taxpayer shall be concluded on deposit of the requisite amount and the balance shall not be recovered and no further proceedings in this regard will be continued or initiated in future. | The immunity is only related to the particular case / assessment for which the declaration is filed and not to the other cases / assessment proceedings not involved in the declaration. |
| 12. | Whether the amount once deposited under the scheme is refundable | No. | |
| 13. | How many declarations as required to be filed | The particular declaration will apply only to the particular case of the taxpayer. This means that the declaration has to be filed case-wise and one can file multiple declarations. | The details are awaited to be notified in the rules / instructions thereon. |
| 14. | Whether there are any exclusions of the persons and cases where the declaration cannot be filed. | Section 96 lays down the conditions where the benefit of the scheme cannot be taken or in words the scheme shall not apply. | Broadly, the categories excluded are asessment cases based on search and seizure cases, where the prosecution is already launched regarding assessment period, where the proceedings have been concluded and amount due has become tax arrears, where income disclosed is earned from abroad; where detention orders have been passed on COFEPOSA; where information is got under the double taxation agreements from abroad; where prosecution under Unlawful Activities (Prevention) Act, 1967, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Prohibition of Benami Property Transactions Act, 1988, the Prevention of Corruption Act, 1988, the Prevention of Money- Laundering Act, 2002, has been instituted; and persons have already been convicted under such cases. |
Table (showing the amount required to be paid under the Scheme).
| Sl. No. | Nature of tax arrear. | Amount payable under this Scheme on or before the 31st day of December, 2024. | Amount payable under this Scheme on or after the 1st day of January, 2025 but on or before the last date. |
| (1) | (2) | (3) | (4) |
| (a) | where the tax arrear is the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax and penalty leviable or levied on such disputed tax in a case where the declarant is an appellant after the 31st day of January, 2020 but on or before the specified date. | Amount of the disputed tax | the aggregate of the amount of disputed tax and ten per cent. Of disputed tax. |
| (b) | where the tax arrear is the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax and penalty leviable or levied on such disputed tax in a case where the declarant is an appellant on or before the 31st day of January, 2020 at the same appellate forum in respect of the such tax arrear. | The aggregate of the amount of disputed tax and ten per cent. Of disputed tax | the aggregate of the amount of disputed tax and twenty per cent. Of disputed tax. |
| (c) | where the tax arrear relates to disputed interest or disputed penalty or disputed fee where the declarant is an appellant after the 31st day of January, 2020 but on or before the specified date. | Twenty-five per cent. Of disputed interest or disputed penalty or disputed fee. | Thirty per cent. Of disputed interest or disputed penalty or disputed fee. |
| (d) | where the tax arrear relates to disputed interest or disputed penalty or disputed fee where the declarant is an appellant on or before the 31st day of January, 2020 at the same appellate forum in respect of the such tax arrear. | Thirty per cent. Of disputed interest or disputed penalty or disputed fee. | Thirty-five per cent. Of disputed interest or disputed penalty or disputed fee: |
Provided that in a case where an appeal or writ petition or special leave petition is filed by the income-tax authority on any disputed issue before the appellate forum, the amount payable shall be one-half of the amount in the Table above calculated on such issue, in such manner, as may be prescribed:
Provided further that in a case where an appeal is filed before the Commissioner (Appeals) or Joint Commissioner (Appeals) or objections is filed before the Dispute Resolution Panel by the appellant on any issue 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 issue is not reversed by the Supreme Court), the amount payable shall be one-half of the amount in the Table above calculated on such issue, in such manner, as may be prescribed:
Provided also that in a case where an appeal is filed by the appellant on any issue 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), the amount payable shall be one-half of the amount in the Table above calculated on such issue, in such manner as may be prescribed.
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