The Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV) is an initiative by the Government of India to solve the rigmarole of long-standing pendency of disputes and to reduce tax litigation, thereby enabling easy settlement of disputes for the taxpayers and the Income Tax Department.
Applicability of Direct Tax Vivad Se Vishwas Scheme, 2024
- This Scheme is applicable to appellants having disputes pending on or before 22nd July, 2024.
- The Scheme will apply to disputes which are pending before the following appellate forums only:
-
- Supreme Court (SC)
- High Court (HC)
- Income Tax Appellate Tribunal (ITAT)
- Commissioner of Income Tax (Appeals) (CIT(A))
- Joint Commissioner of Income Tax (Appeals)(JCIT(A))
- The following disputes are covered under the Scheme:
-
- Appeal, Writ or Special Leave Petition filed either by appellant or by Income Tax Department or by both
- Objections pending before Dispute Resolution Panel (DRP)
- Directions issued by DRP but assessment not completed by AO
- Revision Petition under Section 264
- The Scheme is applicable on disputes involving tax, interest, penalty and/or reduction in loss/unabsorbed depreciation/MAT Credit
- The following forms are involved in the Scheme:
-
- Form – 1 : Filing of declaration by appellant to settle the dispute
- Form – 2 : Certificate by the Authority determining amount payable
- Form – 3 : Intimation of payment by appellant as per Form – 2
- Form – 4 : Order by the Authority declaring full &final settlement
Understanding the Amount Payable to settle disputes under Direct Tax Vivad Se Vishwas Scheme, 2024
| Tax Arrears | Appeal Filing Period | Amount Payable (if paid upto 31-12-2024) | Amount Payable
(if paid after 31-12-2024) |
Amount Waived |
| Disputed Tax + Interest & Penalty charged/chargeable on said tax | 01-02-2020 to
22-07-2024 |
Disputed Tax only | Disputed Tax + 10% of such tax | Interest
and Penalty waived |
| Disputed Tax + Interest & Penalty charged/chargeable on said tax | Up to
31-01-2020
|
Disputed Tax + 10% of such tax | Disputed Tax + 20% of such tax | Interest
and Penalty waived |
| Disputed Interest, Penalty or Fee | 01-02-2020 to
22-07-2024 |
25% of disputed Interest, Penalty or Fee | 30% of disputed Interest, Penalty or Fee | Rest
disputed amount waived |
| Disputed Interest, Penalty or Fee | Up to
31-01-2020
|
30% of disputed Interest, Penalty or Fee | 35% of disputed Interest, Penalty or Fee | Rest
disputed amount waived |
- If appeal is filed by the Income Tax Department before any appellate forum, then the amount payable shall be half of the amount payable ascertained as per the table above.
- If the declarant has secured a favourable order on the same issue filed for any assessment year which is not yet reversed by the next higher appellate forum, then the amount payable shall be half of the amount payable ascertained as per the table above.
Time Limits
- Upon filing of Form – 1 by the declarant, the Income Tax Department has to issue a certificate vide Form – 2 within 15 days of the said declaration.
- Upon receipt of Form – 2, the declarant is supposed to deposit the amount payableas ascertained and intimate about the same via Form – 3 within 15 days of receipt of Form – 2.
FAQs regarding DTVSV, 2024
1. I am an assessee with various issues/appeals pending. Can I file a single declaration for all such issues?
For the same assessee having various issues/appeals, separate declarations via Form – 1 are to be filed. The declarations cannot be clubbed.
2. The Department and the appellant both have filed appeals. Shall two declarations need to be filed?
In the case where the assessee and the Department both have filed appeals, then to settle the same, a single Form – 1 has to be filed by the declarant.
3. I have received Form – 2 but now I do not want to continue with this Scheme, what steps do I need to take?
Upon receipt of Form – 2, if the declarant does not file Form – 3 and deposit the requisite amount within 15 days then it is deemed that no declaration under this scheme was ever made and assessee can continue with the dispute as before.
4. What is proof of withdrawal to be submitted with Form – 3?
In case where appeal is pending before CIT(A)/JCIT(A)/ITAT then by virtue of submission of Form – 1, the appeal is withdrawn. No separate proof is required. The declarant can attach the Form – 1 as proof of withdrawal.
In case where appeal/writ is pending before HC/SC then the declarant has to withdraw the appeal/writ from the court and attach proof of the same with Form – 4 as proof of withdrawal.
5. If the declarant has already paid more amount to the Department than as determined under Form – 2 then what shall be the consequences?
In such a case, the declarant shall be entitled to refund of the excess amount already paid but interest under Section 244A shall not be provided.
Author: CA Snehil Garg
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