Introduction
The main objective of this scheme to resolved income tax disputes under appeal. The pendency of litigation at various levels has been on the rise due to larger number of cases going for appeal than the number of disposals. Keeping in view the success of the previous Vivad Se Vishwas Act, 2020 and the mounting pendency of appeals at CIT(A) level. The Direct Tax Vivad se Vishwas Scheme, 2024 was introduced with the objective of providing a mechanism of settlement of disputed issues, thereby reducing litigation without much cost to the taxpayer.
Applicability
The disputes/appeals, including writs, filed by either the taxpayer or the tax authorities which are pending as on 22nd July, 2024:
> The Supreme Court, High Court, Income Tax Appellate Tribunal, Commissioners/Joint Commissioners (Appeals)
> The Disputed Resolution Panel (DRP) or where DRP has issued orders but the final assessment order is awaited.
> Revision Application filed under section 264 of the Income Tax Act, 1961
Amount payable under DTVSV Scheme, 2024
| S. 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 | Where the tax arrears is the aggregate amount of disputed tax, interest and penalty in a case where the declarant is an New appellant* | 100% of Disputed Tax | 110% of Disputed Tax |
| 2 | Where the tax arrears is the aggregate amount of disputed tax, interest and penalty in a case where the declarant is an Old appellant** | 110% of Disputed Tax | 120% of Disputed Tax |
| 3 | Where the tax arrears relates to disputed interest or disputed penalty or disputed fee where the declarant is an New appellant* | 25% of disputed Tax or disputed interest or disputed fee | 30% of disputed Tax or disputed interest or disputed fee |
| 4 | Where the tax arrears relates to disputed interest or disputed penalty or disputed fee where the declarant is an Old appellant** | 30% of disputed Tax or disputed interest or disputed fee | 35% of disputed Tax or disputed interest or disputed fee |
* New Appellant- It means any case where declarant is an appellant after the 31st January, 2020. In simple words, where taxpayer filed appeal after 31st January 2020.
**Old Appellant – It means any case where declarant is an appellant on or before 31st January, 2020. In simple words, where taxpayer filed appeal on or before 31st January 2020.
Amount Payable shall be 50% of the aforesaid amount in following cases-:
> Where appeal is filed by Income Tax Authority on any disputed issue
> Where appeal is filed by the appellant on any issue on which he has already got a decision in his favour from the ITAT, SC and order is not reversed by the higher authority (HC, SC).
Not Applicability of Scheme in certain cases-:
> If assessment is related to search cases initiated under section 132 or section 132A of the Income Tax Act, 1961
> If prosecution has been instituted on or before the date of filing of declaration.
> If the assessment is related to undisclosed income or assets located outside India.
Forms Notified and process for DTVSV Scheme, 2024
> The Declaration shall be filed by the declarant before designated authority in Form 1 where declarant need to determine the information related to order passed, information related to Tax arrears and amount payable.
> Upon filing the declaration, any appeal pending before the Income-tax Appellate Tribunal or Commissioner (Appeals) or Joint Commissioner (Appeals), in respect of the disputed income or disputed interest or disputed penalty or disputed fee and tax arrears, shall be deemed to have been withdrawn from the date on which certificate under sub-section (1) of section 92 i.e. Form 2 is issued by the designated authority. The Designated authority shall issue certificate within 15 days from the date of receipt of declaration in which they determine the amount payable by the declarant in accordance with the provisions of this Scheme
> Upon receipt of Form 2 issued by designated authority, declarant shall file Form 3 for intimation of payment.
> After that full and final settlement of order shall be issued by designated authority in Form 4.
> Once the case has been settled under this scheme then the designated authority shall not institute any proceeding in respect of an offence or impose any penalty or interest under the Income-tax Act in respect of tax arrears.
How to Apply for declaration in Form 1 of DTVSV Scheme, 2024
> First of all, we need to review the dispute that we want to resolve under the said scheme keeping in mind the case of non-applicability cases (already discussed above) of scheme.
> Then, go to the e-filing portal of the Income Tax Department at gov.in.
> Then select “e-file Tab” and choose file income tax forms
> Then, we will get the three tabs where we need to select the “Person not dependent on any source of Income” [ DTVSV-2024]
> Then we need to select the relevant form i.e. Form 1 for filing declaration.
> After selecting Form 1, we need to select the relevant Assessment Year (A.Y) and filing type i.e. original or Revised as shown in below screenshot
> Then we need to file details. Part A to Part E is applicable for each type of dispute where we need to fill details regarding General information, information relating to dispute and information relating to tax arrears.
> Then we would be able to see many schedules out of them we need to select relevant schedules based on our type of dispute. For eg. A person whose dispute is related to disputed tax needs to file Schedule A (as shown below), on the other hand a person whose dispute is related to TDS/TCS needs to file Schedule B
> After that, we need verify the form with OTP and click on “submit”.
> Upon submission Form -1 we will get the Acknowledgement receipt of our declaration form 1.
Author Bio
Can the TDS reflected in Form 26AS be adjusted against the tax payable under the Vivad Se Vishwas Scheme (VSVS) 2024 if the taxpayer has not filed a return and the assessment order under Section 147 has been appealed before the CIT(A)?
It is observed that the VSVS form includes fields only for tax payment details (such as challan number and BSR code) but lacks a specific field for TDS credit, raising questions about the eligibility of TDS adjustments in this scenario.
Could you please clarify this?