The Vivad Se Vishwas Scheme 2024, introduced in the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman, aims to resolve long-pending tax disputes quickly and with minimal hassle. This scheme is set to come into effect from October 1, 2024, and offers taxpayers a chance to settle their cases by paying reduced penalties and interest.
Let’s break down how you can benefit from this scheme, the process involved, and important deadlines to keep in mind.
Who Can Apply for Vivad Se Vishwas Scheme 2024?
This scheme is designed for taxpayers who have disputed tax cases pending in the Income Tax Appellate Tribunal (ITAT), High Courts, or the Supreme Court. However, only those appeals or petitions that were pending before July 22, 2024 are eligible for settlement under this scheme.
How Does the Scheme Work?
Taxpayers can use this scheme to settle their tax disputes by paying the disputed tax amount along with reduced interest and penalties. The exact amount to be paid will depend on the stage of litigation and when the taxpayer opts for the scheme.
Here are the important deadlines and payment details:
- Until December 31, 2024: Taxpayers can avail the benefits with lower penalties and interest.
- From January 1, 2025: Settling disputed cases will cost more as the penalty and interest will increase after this date.
The last date for settlement has not been announced yet, and the government may decide it based on the scheme’s response.
Key Forms Under the Scheme
To simplify the process, four forms have been introduced:
- Form 1: A declaration and undertaking by the taxpayer.
- Form 2: A certificate issued by the designated authority.
- Form 3: Intimation of payment from the taxpayer.
- Form 4: An order for full and final settlement of the outstanding tax.
These forms are available on the Income Tax Department’s e-filing portal (incometax.gov.in).
The Process for Taxpayers
- Submit Form 1: Taxpayers interested in settling their disputes must first submit Form 1 through the Income Tax Department’s portal.
- Receive Form 2: After review, the designated authority will issue Form 2, confirming the amount to be paid.
- Make the Payment: Once the taxpayer makes the payment, they will submit Form 3 as proof of payment.
- Final Settlement: The designated authority will issue Form 4, marking the full and final settlement of the case.
It’s important to note that any ongoing appeals or petitions must be withdrawn before submitting Form 3 for the payment to be accepted.
Why Opt for Vivad Se Vishwas Scheme?
The Vivad Se Vishwas Scheme 2024 is a golden opportunity for taxpayers to settle their long-standing tax disputes without enduring the prolonged process of litigation. With the promise of reduced penalties and a simplified process, the scheme can save both time and money for taxpayers looking to resolve their cases efficiently.
If you are involved in a tax dispute, this scheme can help you bring the matter to a close and avoid further interest accumulation. Make sure to act before December 31, 2024, to enjoy the maximum benefits of this scheme.
