Lower Settlement Amount for Applications Submitted by December 31

 

The Income Tax Department authorized the "Vivad se Vishwas 2.0" dispute resolution scheme on Saturday. The department announced that applications for the scheme can be submitted from October 1 to December 31, 2024. Taxpayers who submit their applications by December 31 will pay a lower settlement amount compared to those who file their applications after the announcement.

Finance Minister Nirmala Sitharaman announced the "Vivad se Vishwas" scheme for resolving long-pending appeals related to tax disputes in her budget speech. The Central Board of Direct Taxes (CBDT) stated that this scheme offers a lower settlement amount for "new appellants" compared to "old appellants."

Key Points:

• The Income Tax Department has approved the "Vivad se Vishwas 2.0" scheme.
• Taxpayers can apply for the scheme from October 1 to December 31.
• Taxpayers who apply by December 31 will pay a lower settlement amount compared to those applying later.

The Income Tax Department has released four different forms for taxpayers to participate in the scheme. These include:

• Form-1: For the taxpayer to make the declaration.
• Form-2: For the certificate issued by the authority.
• Form-3: For the taxpayer to provide payment details.
• Form-4: For the issuance of the final settlement order by the authority.

These forms will be available on the Income Tax Department's e-filing portal. Currently, 2.7 crore tax disputes involving claims of around ₹35 lakh crore are pending in various authorities.