The Vivad Se Vishwas Revised Scheme 2024

The Vivad Se Vishwas Scheme 2024 is a revised tax dispute resolution mechanism launched by the Indian government to simplify the settlement of direct tax disputes and reduce litigation. Here are its comprehensive details:

Objective

The scheme aims to:

• Resolve disputes under direct tax laws efficiently.
• Reduce the burden of pending litigation for taxpayers and the Income Tax Department.
• Encourage voluntary compliance by offering relief in terms of penalties, interest, and prosecution.

Eligibility Criteria

Taxpayers can opt for the scheme if they meet one of the following conditions as of July 22, 2024:

1. Pending Appeals:
   • Appeals or writs filed before appellate authorities, including the Income Tax Appellate Tribunal (ITAT), High Court, or Supreme Court.
2. Dispute Resolution Panel (DRP):
   • Cases where objections have been filed, but no directions have been issued by the DRP.
   • Cases where directions have been issued by the DRP, but the Assessing Officer (AO) has not issued the final assessment order.
3. Revision Applications: Pending revisions under Section 264 of the Income Tax Act.

Cases involving search and seizure, undisclosed foreign assets, or income are excluded.

Key Benefits

1. Reduction in Tax Arrears:
   • Taxpayers can settle disputes by paying only the disputed tax amount.
   • Penalties, interest, and prosecution are waived.
   • Additional benefits for declarations filed before December 31, 2024.
   • Incremental charges apply for payments made after January 1, 2025.
2. No Litigation Burden:
   • Taxpayers are not required to pursue ongoing appeals or legal disputes once the declaration is filed.

Procedure

The process involves filing specified forms and completing the payment:

1. Form-1: Declaration of dispute and undertaking to withdraw appeals.
2. Form-2: Certificate issued by the designated authority determining the settlement amount.
3. Form-3: Proof of payment and confirmation of withdrawal of appeals.
4. Form-4: Final order issued by the authority confirming the settlement.

The entire process is conducted online through the Income Tax Department’s e-filing portal, ensuring transparency and ease of use.

Payment Structure

The payable amount varies based on the timeline and type of dispute:

• For disputes involving only tax arrears, the taxpayer pays the disputed tax amount if settled by December 31, 2024.
• Additional amounts (10-20% of disputed tax) apply for payments made after this date.
• For disputes involving penalty, interest, or fees, taxpayers pay 25-30% of the disputed amount.

Key Deadlines

• Scheme effectiveness: October 1, 2024.
• Early filing deadline: December 31, 2024.
• Final deadline: As specified by the government (usually with additional charges).

Exclusions

The scheme does not cover:

1. Cases under investigation for tax evasion or fraud.
2. Matters related to the Black Money Act or Prohibition of Benami Transactions Act.
3. Cases involving undisclosed foreign assets or income.

Outcome

• Settlement under this scheme is deemed final and binding.
• Taxpayers receive immunity from further action related to the settled disputes.