Vivad Se Vishwas Scheme Deadline Extended Till Jan 31

January 1, 2025

The Central Board of Direct Taxes (CBDT) has recently extended the deadline for taxpayers involved in the Vivad Se Vishwas scheme. The new deadline is now January 31, 2025, up from the previous date of December 31, 2024. This extension is intended to provide taxpayers with additional time to ascertain the amounts payable under the scheme.

What is the Vivad Se Vishwas Scheme?

The Vivad Se Vishwas scheme is an initiative launched by the Government of India to help taxpayers settle disputes with the income tax department. The scheme encourages individuals and businesses to resolve outstanding tax liabilities amicably. Taxpayers can pay their disputed amounts along with a specified percentage to settle their cases. This minimizes prolonged legal disputes and additional penalties.

Purpose of the Extension

The CBDT has stated that the extension allows taxpayers more time to evaluate the amounts they owe. This decision aims to facilitate a smoother resolution process for taxpayers who may require additional time to gather necessary documentation or funds. It is expected to especially benefit taxpayers who are struggling with the legal complexities

Classification of Appellants

- New Appellants: Appeal proceedings initiated after January 31, 2020.
- Old Appellants: Appeal proceedings initiated on or before January 31, 2020.

Payment Categories

New Appellants:
- Disputed Tax: 100% if paid by January 31, 2025; 110% if paid on February 1, 2025.
- Disputed Interest, Penalties, or Fees: 25% if paid by January 31, 2025; 30% if paid on February 1, 2025.
Old Appellants:
- Disputed Tax: 110% if paid by January 31, 2025; 120% if paid on February 1, 2025.
- Disputed Interest, Penalties, or Fees: 30% if paid by January 31, 2025; 35% if paid on February 1, 2025

Eligibility Criteria

To participate in the Vivad Se Vishwas scheme, taxpayers must meet specific eligibility criteria. They should have outstanding tax disputes that are eligible for settlement under the scheme. Additionally, taxpayers must ensure that their cases are not under investigation by the income tax department.

Process for Participation

Taxpayers interested in availing themselves of the scheme must submit a declaration in the prescribed format. They need to calculate the amount payable as per the guidelines outlined in the scheme. Upon submission, the CBDT will process the application and confirm the settlement amount.

GKToday Notes:
Vivad Se Vishwas: This scheme helps taxpayers resolve disputes with the income tax department. It allows settlement of outstanding liabilities by paying disputed amounts with a specified percentage.
CBDT: The Central Board of Direct Taxes administers direct tax laws in India. It plays important role in tax policy, collection, and dispute resolution for taxpayers.
Nirmala Sitharaman: She is the current Union Finance Minister of India. Sitharaman has introduced various economic reforms and initiatives to enhance taxpayer compliance and ease tax burdens.
Appellate Authorities: These are judicial bodies that hear appeals against decisions made by lower tax authorities. They play role in resolving tax disputes and ensuring fair adjudication.

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