The provisions of Income Tax Act, provide for mechanism of filling of appeals against orders passed under the proceedings of the Act, both by tax payer and the Department before respective appellate Authority, such as Joint Commissioner of Income Tax (Appeals), Commissioner of Income Tax (appeals), the Income Tax Appellate Tribunal, High Court and Supreme Court.
It has been the endeavor of the CBDT to provide expedition disposal of appeals by appellate authorities under its administrative control. One such measure was the Direct Tax Vivad Se Vishwas Act, 2020 launched for appeals pending as on 31st January, 2020. The Scheme got a very encouraging response from the tax payers and also resulted in garnering substantial revenue for the Government.
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 Vivaad Se Vishwas Act, 2020 and the amounting pendency of appeals at CIT(A) leval, introduction of a Direct Tax Vivad se Vishwas Scheme, 2024 is proposed with the objective of providing a mechanism of statement of disputed issues, thereby reducing litigation without much cost to the exchequer.
It is proposed to insert a new chapter to provide the Direct Tax Vivad Se Vishwas Scheme, 2024.
The Chapter, inter alia provides-
- The definitions of certain expressions relating to “appellant”, “appellant forum”, ‘declarant”, “declaration”, “designated authority”, “disputed fee”, “disputed income”, disputed interest”, “dsiputed penalty”, “disputed tax”, “last date”, “specified date”, and “tax arrears”;
- The provisions relating to the amount payable by the declarant;
- The provisions relating to the particulars to be furnished in the form of declaration;
- The provisions relating to the time and manner of payment of tax arrears;
- The provisions relating to immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases;
- The provisions of no refund of amount paid under the Scheme;
- The provisions relating to benefit, concession or immunity not to apply in other proceedings;
- The provisions relating to the Scheme not being applicable in certain cases;
- The provisions relating to the power of the Central Board of Direct Taxes to issue directions;
- The provisions relating to the power of the Central Government to remove difficulties in giving effect to the provisions of the said Scheme ,2024; and
- The provisions relating to the power of the Central Government to make rules for carrying out the provisions of this Scheme.
It is proposed that this Scheme shall come in to force from the date to be notified by the Central Government. The last date for the Scheme is also proposed to be notified.
Payable Amount:
The amount to be paid by the taxpayers opting to settle their disputes is:
| Sr. No. | Nature of Tax arrear | The amount payable on or Before 31 December 2024 | The amount payable on or after 1st January 2025 but on or before the last Date
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| (a) | Aggregate amount of disputed tax, interest on such disputed tax and Penalty levied or livable on such disputed tax: | |||
| Appeal filed after 31/01/2020 But on or before 22/07/2024 | 100% of disputed tax | 110% of disputed tax | ||
| Appeal pending at same forum Before 31/01/2020 | 110% of disputed tax | 120% of disputed tax | ||
| (b) | Disputed interest/penalty/fee: | |||
| Appeal filed after 31/01/2020 But on or before 22/07/2024 | 25% of disputed interest, Penalty, fees | 30% of disputed interest, Penalty, fees | ||
| Appeal /revision petition Pending at same forum on or Before 31/01/2020 | 30% of disputed interest, Penalty, fees | 35% of disputed interest, Penalty, fees | ||
(c) The amount payable would be reduced to 50% in the following cases:
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In the cases where orders have been passed and not appealed as on 22/07/2024, but the time limit to file appeals has not expired, do not appear to be covered under this Scheme.
The Government is expected to clarify the same.
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