FinMin Notifies Direct Tax Vivad Se Vishwas Scheme 2024, New Settlement Window Opens Oct 1

The scheme will give taxpayers a chance to settle appeals, writ petitions, and special leave petitions which are pending before the Supreme Court, high courts, and tribunals, as of July 22, 2024

The Union finance ministry on Thursday informed the norms related to the scheme which is scheduled to come into effect from October 1, 2024.

Source : ABPLIVE AI

The Ministry of Finance notified the Direct Tax Vivad Se Vishwas Scheme, 2024 in the week. The Union ministry on Thursday informed the norms related to the scheme which is scheduled to come into effect from October 1, 2024.

The scheme will give taxpayers a chance to settle income tax related appeals, writ petitions, and special leave petitions which are pending before the Supreme Court, high courts, and appellate tribunals, as of July 22, 2024. The scheme intends to cut down income tax litigation, reported The Economic Times.

The notification from the Ministry of Finance, released on September 19, 2024, read, “In exercise of the powers conferred by sub-section (2) of section 88 of the Finance (No. 2) Act, 2024 (15 of 2024), the Central Government hereby appoints the 1st day of October, 2024 as the date on which the Direct Tax Vivad Se Vishwas Scheme, 2024 shall come into force.”

The scheme was announced in Budget 2024 tabled this year in July. While the operational date for the initiative has been revealed, the final date for the same is yet to be announced.

The Vivaad Se Vishwas Act was earlier introduced in 2020 and the officials in the Budget presentation said that the scheme is being proposed again this year seeing its earlier success.

Eligibility Criteria For Scheme

To be eligible for Direct Tax Vivad Se Vishwas Scheme 2024, individuals will have to ensure that their appeals, writs and petitions are pending as of July 22, 2024. 

Further, as per the Finance Act 2024, certain individuals can avail the scheme. These include:

• A person in whose case an appeal or writ petition or special leave petition filed either by him or by the income tax authorities or both, before an appellate forum and such appeal or petition is pending as on the specified date.
• A person who has submitted objections before the Dispute Resolution Panel under Section 144C of the I-T Act and the panel has not issued any direction on or before the specified date.
• A person who has received direction from the Dispute Resolution Panel under subsection (5) of Section 144C of the I-T Act, however, the Assessment Officer is yet to complete the assessment under subsection (13) of the section on or before the specified date.
• A person who has submitted an application for changes under section 264 of the I-T Act and the application remains pending as on the specified date.