Direct Tax Vivad Se Vishwas Scheme, 2024, was enacted to resolve disputes regarding pending income tax litigation. The scheme aims to give taxpayers peace of mind by settling legal disputes. This scheme was notified on October 1, 2024. After this, several queries were received from the stakeholders seeking guidance in respect of various provisions.
Following this, the income tax department has released a set of frequently asked questions (FAQs) to address these concerns.
These are some of the key questions that the income tax department has answered:
Which are not covered under the scheme?
The scheme does not cover cases relating to an assessment year for which an assessment has been made under section 143(3)/I44/147/153A/153C on the basis of a search initiated under section 132/132A of the Act.
There are other cases where the COFEPOSA Act, 1974; UAPA Act, 1967; NDPS Aet 1985; PBPT Act, 1988; PC Act, 1988; and PMLA 2002 may apply. Such cases are also not covered by the Scheme.
What are the various forms specified in the scheme?
Four separate forms have been notified for the purposes of this scheme.
Form-l: Form for filing declaration and undertaking by the declarant
Form-2: Form for a certificate to be issued by the designated authority
Form-3: Form for intimation of payment by the declarant
Form-4: Order for full and final settlement of tax arrears by the designated authority
What are the various timelines specified in the scheme?
Various timelines specified in the scheme are as follows:
I. The taxpayer will file a declaration and undertaking in form-1 on or before Dec 31, 2024, to keep the amount payable on the lower threshold.
II. The designated authority will issue Form-2 within a period of fifteen days from the date of receipt of the declaration to determine the amount payable by the taxpayer.
III. The taxpayer will pay the amount as determined in Form-2 within fifteen days from the date of receipt of the certificate and will intimate the details of such payment in Form-3.
IV. Upon receipt of Form-3, the Designated Authority will pass an order in Form-4 stating that the taxpayer has paid the full and final amount.
Which assessments will be considered to have been made based on the search initiated under section 132/132A of the Act?
Assessments framed under section 153A or 153C are made based on searches initiated under section 132/132A. Therefore, such cases will not be eligible for the DTVSV Scheme 2024.
What if the appeal is filed before the High Court or Supreme Court and is pending admission as of 22.7.2024?
Yes, it would still be eligible even if the appeal is pending before the High Court or the Supreme Court.
Are disputes relating to wealth tax, STT, commodity transaction tax and equalisation levy covered?
No, only disputes relating to income-tax arc are covered. For more details, check THIS link.
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