CBDT Clarifies DTVSV Scheme 2024:
A significant update to the Direct Tax Vivad Se Vishwas Scheme, 2024, was announced to offer relief to taxpayers who were previously unable to apply due to specific circumstances.
In an order dated January 20, 2025, the Ministry of Finance addressed these issues, enabling more taxpayers to settle their pending income tax disputes through the scheme.
This scheme, introduced in the 2024 Budget, is designed to help resolve ongoing tax disputes by waiving interest and penalties if the taxpayer settles the disputed tax amount. However, taxpayers have until January 31, 2025, to pay the full disputed amount to avail of a reduced settlement. After this date, the payment terms will change.
Enacted under the Finance (No. 2) Act, 2024, and effective from October 1, 2024, the scheme aims to resolve direct tax disputes amicably. However, certain situations created complications, including cases where:
- An order was passed before the cutoff date of July 22, 2024.
- The time for filing an appeal against the order was still open as of the cutoff date.
- Appeals were filed after July 22, 2024, but within the allowed time frame.
- Appeals were submitted without a delay condonation application.
To address these complications, the Central Government has now clarified that such appeals will be considered as pending as of July 22, 2024, making those taxpayers eligible for the scheme. The disputed tax amount will be calculated based on the appeal filed, and the relevant scheme rules will apply to these cases.
The order, issued under Section 98 of the Finance (No. 2) Act, 2024, reaffirms the government’s commitment to resolving tax disputes efficiently and clarifies procedural guidelines. Taxpayers are encouraged to review their cases and seek professional advice to take advantage of the scheme before the deadlines.
To download the official order, click here.
For understanding the Direct Tax Vivad se Vishwas Scheme 2024, click here.
CBDT Clarifies DTVSV Scheme 2024
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