The Direct Tax Vivad se Vishwas Scheme 2024

The Direct Tax Vivad se Vishwas Scheme 2024 has been reintroduced, retaining the key characteristics of the previous 2020 initiative.

This new iteration follows the successful implementation of the earlier scheme. Such initiatives are increasingly becoming integral to taxation legislation, as the government prioritizes the resolution of disputes rather than dedicating administrative resources to contesting them, where the likelihood of success is minimal.

Eligible Cases ?

Taxpayer’s case is pending in Appeal / Writ / SLP with following as on 22^nd July 2024:
Joint Commissioner (Appeals)
Commissioner (Appeals)
Income Tax Appellate Tribunal
High Court
Supreme Court

Taxpayers who have filed objections against the draft assessment order before the Dispute Resolution Panel (“DRP”) under section 144C of the Income-tax Act, 1961 (“IT Act”) and the DRP has not issued any directions to the Assessing Officer (“AO”) on or before July 22, 2024.

Taxpayers in whose case the DRP has issued directions to the AO under section 144C(5) of the IT Act and the AO has not passed the final assessment order on or before July 22, 2024.

Taxpayers who have filed revision application under section 264 of the IT Act and such application is pending as on July 22, 2024.

Herein after referred to as “pending cases”

What to pay and what to save ?

Case Covered	If Amount is paid on or before 31^st December 2024		If Amount is paid on or after 01^st January 2025 but before last date which is yet to be notified
Case Covered	Payable	Immunity	Payable	Immunity
Above pending cases filed / directions issued between 31^st January 2020 – 22^nd July 2024	100% of Tax in dispute	Interest and Penalty	110% of Tax in dispute	Interest and Penalty
Above pending cases filed / directions issued on or before 31^st January 2020 and is pending at the same appellate forum at present	110% of Tax in dispute	Interest and Penalty	120% of Tax in dispute	Interest and Penalty
Pending cases related to “Disputed Interest / Penalty / Fee” filed between 31^st January 2020 – 22^nd July 2024	25% of Disputed Interest / Penalty / Fee	75% of Disputed Interest / Penalty / Fee	30% of Disputed Interest / Penalty / Fee	70% of Disputed Interest / Penalty / Fee
Pending cases related to “Disputed Interest / Penalty / Fee” filed on or before 31^st January 2020 and is pending at the same appellate forum at present	30% of Disputed Interest / Penalty / Fee	70% of Disputed Interest / Penalty / Fee	35% of Disputed Interest / Penalty / Fee	65% of Disputed Interest / Penalty / Fee

Note:

In the following scenarios only 50% of the amount payable in the Table above shall be payable for availing the VSV Scheme, 2024:

Where the Pending Case has been filed by the Income-tax Authorities.
Where an appeal / objection has been filed before the CIT(A) / ITAT / DRP and an order in favour of the taxpayer has been received on any issue pending in the said appeal / objection from the higher Appellate Forums (and such decision has not been reversed).

Cases not covered under the VSV Scheme, 2024

Where assessment has been made on the basis of the search initiated under section 132 or 132A of the IT Act.
Where prosecution under the IT Act or any other specified act has been instituted on or before the date of filing declaration by the taxpayer.
Where there is undisclosed income from a source located outside India or undisclosed asset outside India.
Where assessment or reassessment has been made based on the information received under Double Taxation Avoidance Agreement.
Where an order of detention has been made under the provisions of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 on or before the date of filing of declaration and the same has not been revoked or set aside in specified circumstances.
Where the taxpayer has been notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 on or before the date of filing of declaration.

Note

Where the declarant had, before filing the declaration under this scheme, paid any amount under the Income-tax Act in respect of his tax arrears which exceeds the amount payable as depicted in table above, he shall be entitled to a refund of such excess amount, but shall not be entitled to interest on such excess amount under section 244A of the Income-tax Act.