The Indian government has introduced the Direct Tax Vivad Se Vishwas (DTVSV) Scheme 2024, a new program designed to resolve disputes related to income tax. The goal of this scheme is to reduce the number of pending tax litigations, generate revenue more quickly, and provide relief to taxpayers by simplifying the process of settling disputes.
Key Features of the DTVSV Scheme 2024
- Coverage of the Scheme:
- This scheme covers income tax disputes that are pending as of July 22, 2024, either in the form of appeals, writ petitions, or special leave petitions.
- Taxpayers who have filed objections before the Dispute Resolution Panel (DRP) or whose appeals are pending before higher authorities are also eligible to participate.
- Non-Eligible Cases:
- The scheme does not apply to cases involving income from undisclosed foreign assets or searches conducted under certain sections of the Income-tax Act.
- Cases related to prosecution initiated before the declaration, as well as those involving specific legal acts (like the Prevention of Money Laundering Act), are also excluded.
- Tax Arrears and Payable Amount:
- The amount payable under the scheme depends on whether the declaration is made on or before December 31, 2024, or afterward. Generally, taxpayers are expected to pay 100% of the disputed tax amount if they declare before the deadline.
- In cases of disputed interest, penalty, or fees, reduced rates (like 25-30% of the disputed amount) apply.
- Timeline and Process:
- Taxpayers must file a declaration by December 31, 2024, to benefit from lower payment rates.
- Once the declaration is made, the tax authorities will issue a certificate (Form 2) within 15 days. The taxpayer must then make the payment and submit proof to the authorities.
- Forms Involved:
- The process involves multiple forms, including Form 1 for filing declarations and Form 4 for receiving the final settlement.
Benefits of the Scheme
The DTVSV Scheme 2024 offers significant benefits for taxpayers:
- Simplified Resolution: It provides a straightforward way to settle disputes, saving time and legal expenses.
- Reduced Financial Burden: By offering reduced penalties and a clear payment structure, the scheme minimizes the financial impact on taxpayers.
- Peace of Mind: Taxpayers can avoid lengthy litigation and focus on their business or personal financial health without the stress of ongoing disputes.
The scheme represents a key step towards improving the efficiency of the Indian tax system and providing relief to both the government and taxpayers.
For more details, you can consult the official guidelines on the government’s tax website.