Apply Online for Vivad Se Vishwas Scheme 2024. Check Eligibility, Benefits, Status Online.
vivad se vishwas scheme 2024
This article outlines the main provisions of the proposed Direct Tax Vivad Se Vishwas Scheme, 2024 (2024 Scheme) introduced in the Finance (No. 2) Bill, 2024, as part of the Union Budget 2024 presented by the Honourable Finance Minister on 23 July 2024. The 2024 Scheme facilitates the resolution of pending disputes under Income-tax Laws (ITL) as of 22 July 2024. It draws inspiration from its predecessor, the Direct Tax Vivad Se Vishwas Act, 2020 (2020 Scheme), concerning its scope, procedural aspects, and settlement methods. Specific details such as the commencement date for taxpayers to initiate settlement and the scheme’s expiry date are yet to be announced.
Under the 2024 Scheme, eligible taxpayers can avail of settlement options in cases involving pending appeals, writ petitions, special leave petitions (SLPs) before appellate authorities, High Courts (HCs), or the Supreme Court (SC). It also covers objections filed before the Dispute Resolution Panel (DRP) where directions are awaited or issued but assessment orders are pending, and revision applications filed by taxpayers before the Commissioner. The scheme allows taxpayers to resolve their eligible disputes by paying amounts determined by the Designated Authority (DA) as per the provisions of the 2024 Scheme.
Overview of the 2024 – Vivad Se Vishwas Scheme :
- Scheme Introduction : This Tax Alert provides an overview of the proposed Direct Tax Vivad Se Vishwas Scheme, 2024 (2024 Scheme) included in the Finance (No. 2) Bill, 2024 (FB 2024) as part of the Union Budget 2024 announced on 23 July 2024.
- Scope of Settlement : The 2024 Scheme allows for the resolution of disputes pending under Income-tax Laws (ITL) as on 22 July 2024. It mirrors elements of the earlier Direct Tax Vivad Se Vishwas Act, 2020 (2020 Scheme) concerning applicability, procedural framework, and dispute resolution methods.
- Commencement and Sunset Dates : Specific dates for taxpayers to commence dispute settlement and the scheme’s expiry are yet to be specified.
Objective of Vivad Se Vishwas Scheme :
- Main Objective : The primary aim of the Vivad Se Vishwas Scheme is to facilitate the resolution of long-pending tax disputes under the purview of the Indian Tax Department, thereby providing relief to taxpayers.
- Digital Tax Facilities : Recently, the Ministry of Finance has made all tax services faceless, allowing taxpayers to now make tax payments online.
- Challenges in Tax Filing : During the process of filling online income tax forms, many taxpayers inadvertently make small errors or forget to file returns on time, resulting in the imposition of interest or penalties by the Income Tax Department. Over time, these cases often escalate into disputes.
- Introduction of the Scheme : To address these issues, the Indian Ministry of Finance launched the Vivad Se Vishwas Scheme, offering taxpayers the opportunity to settle taxes without interest or penalties.
Vivad Se Vishwas Scheme Latest Update :
- Scheme Origins: The Vivad Se Vishwas Scheme was originally launched in 2020 during the COVID-19 pandemic, taking into consideration the economic conditions of the people. Initially scheduled to end by 31 December 2023, its extension was decided by the government owing to its positive outcomes and benefits.
- New Portal Introduction: A new portal has been initiated by the government to facilitate the operation of this scheme. Considering approximately 4,83,000 direct tax cases pending nationwide, the scheme will remain active for some more time to resolve these cases.
Vivad Se Vishwas Scheme Important Documents :
- Documents Required for MSMEs: MSME (Micro, Small, and Medium Enterprises) owners need to submit the following documents to avail the benefits of the Vivad Se Vishwas Scheme:
- PAN Card (Permanent Account Number)
- Business Registration Number
- Registration Number of the company if the applicant is a public or private company
- MSME registration number if the company is registered under MSME
Vivad Se Vishwas Scheme Online Application :
- Application Process for MSMEs: MSMEs must complete the application process for the Vivad Se Vishwas Scheme as follows:
- Firstly, the applicant needs to register on the official website of G MSME.
- After registration, the applicant must fill in all necessary details.
- Post filling in details, the applicant needs to verify their registered MSME.
- Upon successful verification, the applicant must update the payment details on the portal of the nodal officer.
Eligibility Criteria forVivad Se Vishwas Scheme :
Taxpayers can utilize the 2024 Scheme in the following scenarios:
- Appeals, writ petitions, special leave petitions (SLPs) pending before appellate authorities, High Court (HC), or Supreme Court (SC) related to disputed tax, interest, penalty, or fees.
- Objections filed before the Dispute Resolution Panel (DRP) where directions are awaited.
- DRP has issued directions, but the tax authority has not yet passed an assessment order accordingly.
- Revision applications filed by taxpayers before the Commissioner.
Announcement for Settlement of Tax Disputes Amounting to Rs 1.5 Crore – Through Vishwas se vivad :
- Introduction : A declaration was made for resolving tax disputes totaling Rs 1.5 crore by taxpayers, including public enterprises.
- Poll: Will you switch to the new income tax regime after Budget changes ?
- Yes
- No
- Already under new regime
- Can’t Say
- As of March 1, 2021: Rs 98,328 crore had been announced.
- Views of Tax Partner Gautam Nayak from CNK & Associates:
- He likened VVS-2024 to the 2020 scheme where taxpayers were required to pay half of the disputed tax if under appeal, with the remaining payable upon settlement after January 31, 2020, or with a 10% penalty if paid after December 31, 2024.
- Limitations of the Scheme:
- Unfortunately, only taxpayers who perceive their appeals as weak will benefit, according to Nayak, particularly those with strong cases pending before the appellate authority (ITAT).
- Opinion of Partner Sandeep Bhalla from Dhruv Advisors:
- The aim is to swiftly settle pending tax demands by the Income Tax Department, relieving both taxpayers and the department from prolonged litigation. He noted that many appeals are currently pending at the CIT (Appeals) – Faceless level, and success rates for taxpayers are high in several complex assessments.
- Statement by Partner Gopal Mundra from Economic Law Practices (ELP):
- He highlighted that the 2020 scheme explicitly covered cases where orders were passed by appellate authorities or courts and the deadline for filing appeals had not expired by the announcement date. VVS-2024 remains silent on this aspect.
- Ineligibility under VVS-2024:
- Certain categories of cases are not eligible for settlement under VVS-2024, including those assessed based on search operations, where prosecution was initiated before the announcement date, disputes related to undisclosed foreign income and assets, and cases where the taxpayer has been declared guilty under various laws such as the Prevention of Money Laundering Act or Benami Transactions Act before the declaration date.
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- vivad se vishwas scheme 2024
- Overview of the 2024 – Vivad Se Vishwas Scheme :
- Objective of Vivad Se Vishwas Scheme :
- Vivad Se Vishwas Scheme Latest Update :
- Vivad Se Vishwas Scheme Important Documents :
- Vivad Se Vishwas Scheme Online Application :
- Eligibility Criteria forVivad Se Vishwas Scheme :
- Announcement for Settlement of Tax Disputes Amounting to Rs 1.5 Crore – Through Vishwas se vivad :
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