Vivad se Vishwas Scheme 2024
Vivad se Vishwas 2024 Scheme (Herein after referred as “VsV”) announced in the budget 2024, is a government initiative aimed at resolving pending income tax disputes.
Overview of Vivad se Vishwas 2024 Scheme
This scheme applies to all the pending income tax disputes as of July 22, 2024 including appeals, writ and special leave petitions before various courts and tribunals. Taxpayers can settle their disputes by paying a specified portion of disputed tax, interest and penalties which depend on relevant appeals, writ and special leave petitions related to specified period. Making a declaration under the scheme provides complete immunity from prosecution, penalties and interest on the covered tax arrears.
Eligibility under VsV Scheme Benefits
The following persons are eligible for benefits under the Vivad se Vishwas 2024 Scheme
- A person in whose case appeal/ writ petition/ special leave petition (SLP) has been filed either by the assesse or tax authority and is pending on July 22, 2024;
- A person has filed objections before the Dispute Resolution Panel (DRP) under section 144C of the Income Tax Act, 1961 (Act) and DRP has not issued any direction on or before July 22, 2024
- A person in whose case DRP has issued direction on or before July 22, 2024 but the Assessing Officer (AO) has not completed the assessment on or before July 22, 2024; or
- A person who has filed an application for revision under section 264 of the Act and such application is pending as on July 22, 2024.
Determination of Tax Liability under VsV
A: Cases Pertaining to Disputed Tax, Interest, and Penalty
| Nature of Tax Liabilities | Timeline | Amount Payable on or before Dec 31, 2024 | Amount Payable on or after Jan 01, 2025 |
|---|---|---|---|
| Aggregate amount of disputed tax, interest and penalty | Appellant after Jan 31, 2020 but on or before July 22, 2024 | Amount of disputed tax | Disputed tax + 10% |
| Aggregate amount of disputed tax, interest and penalty | Appellant on or before Jan 31, 2020 | Disputed tax + 10% | Disputed tax + 20% |
B: Cases Pertaining to Disputed Interest, Penalty, or Fee
| Nature of Tax Liabilities | Timeline | Amount Payable on or before Dec 31, 2024 | Amount Payable on or after Jan 01, 2025 |
|---|---|---|---|
| Disputed interest/penalty/fee | Appellant after Jan 31, 2020 but on or before July 22, 2024 | 25% of disputed interest/penalty/fee | 30% of disputed interest/penalty/fee |
| Disputed interest/penalty/fee | Appellant on or before Jan 31, 2020 | 30% of disputed interest/penalty/fee | 35% of disputed interest/penalty/fee |
C: Special Cases
In the following cases the amount payable will be 50% of the amount calculated as per the above table:
- The Appeal/ writ petition//SLP has been filed by the income tax authority.
- When the taxpayer files an appeal against a favourable decision before the ITAT/ High Court, where the High Court or Supreme Court does not reverse the decision;
The taxpayer had (before filing the declaration under the VsV scheme) paid any amount under the Act in respect of his tax arrears (i.e. disputed tax/disputed penalty/interest/fees) which exceeds the amount payable under the Vivad se Vishwas 2024 scheme, the excess amount paid by him shall be refunded without interest under section 244A.
Effective Date of Vivad se Vishwas 2024
This scheme will be effective from October 1, 2024.