During the budget speech for the year 2024, Union Finance Minister Nirmala Sitharaman had announced that the central government will soon come up with a scheme to settle income tax related matters. Now the Central Board of Direct Taxes i.e. CBDT has notified the Direct Tax Vivad Se Vishwas Scheme for this. PIB gave this information on Saturday through one of its releases. According to the PIB release, the Vivad Se Vishwas Scheme will come into effect from October 1. Under the scheme, efforts will be made to settle income tax related disputes expeditiously.
The Dispute to Trust Scheme was enacted through the Finance No 2 Act, 2024. Apart from this, the rules and forms for this scheme were also notified today.The DTVSV Scheme provides for appeal for a lower settlement amount for the ‘new appellant’ as compared to the ‘old appellant’. The DTVSV Scheme also provides for appeal for a lower settlement amount for those taxpayers who file the declaration on or before the said date as compared to those filing the declaration after 31 December 2024.4 different forms have been notified for various purposes of the Dispute to Trust Scheme. They are as follows.
FORM-1:Form for filing declaration and Undertaking by the declarant
FORM-2:Form for Certificate to be issued by Designated Authority
FORM-3:Form for intimation of payment by the declarant
FORM-4:Order for Full and Final Settlement of tax arrears by Designated Authority
The DTVSV Scheme also provides that a separate Form-1 shall be filed for each dispute, provided that where both the appellant and the Income Tax Authority have filed appeals in respect of the same order, in such a case, one Form-1 shall be filed.
Intimation of payment is to be given in Form-3 and submitted to the designated authority along with the appeal, objection, application, writ petition, special leave petition or proof of withdrawal of the claim.
Forms 1 and 3 will be submitted electronically by the declarant. These forms will be available on the e-filing portal of the Income Tax Department i.e. www.incometax.gov.inWill be made available on.
For detailed provisions of the DTVSV Scheme, 2024, sections 88 to 99 of the Finance (No. 2) Act, 2024 may be referred to along with the Direct Tax Vivaad se Vishwas Rules, 2024.
This is another initiative of the government towards litigation management.
