Today is the last day of the year 2024, and tomorrow marks the beginning of the new year (New Year 2025). During this time, there is big news for taxpayers. The Income Tax Department has extended the deadline for the Vivad Se Vishwas Scheme (Dispute Resolution Scheme). The original deadline for this scheme was set for December 31, 2024, but it has now been extended to January 31, 2025. This means that taxpayers have one more month to resolve their disputed taxes at a reduced amount.
An Overview of the Vivad Se Vishwas Scheme
The Vivad Se Vishwas Scheme was introduced by the Income Tax Department to help taxpayers resolve their disputed taxes. Under this scheme, taxpayers can settle their tax disputes at a lower amount. The announcement of this scheme was made by the Finance Minister in the first budget of Modi 3.0. The scheme allows taxpayers to resolve disputed taxes at a more affordable rate, thereby helping them avoid the financial burden of high tax liabilities.
Deadline Extended by One Month
The Income Tax Department had initially set the deadline for this scheme as December 31, 2024. However, it has now been extended to January 31, 2025. This means that taxpayers can now resolve their disputed taxes under this scheme until the end of January. This announcement was made by the Income Tax Department on Monday.
What Happens If the Deadline is Missed?
If taxpayers fail to resolve their disputes by January 31, 2025, they will be required to pay 110% of the disputed tax demand starting February 1, 2025, or later. This means that taxpayers will have to make a payment higher than the regular tax amount.
Who Can Benefit from the Vivad Se Vishwas Scheme?
This scheme is available to taxpayers who have disputes related to their taxes and have filed petitions in the Supreme Court, High Court, or Income Tax Appellate Tribunal (ITAT). Taxpayers who filed their petitions by July 22, 2024, can benefit from this scheme and resolve their tax disputes at a reduced amount.
Announcement by the Central Board of Direct Taxes (CBDT)
The Central Board of Direct Taxes (CBDT) recently announced the extension of the Vivad Se Vishwas Scheme’s deadline. It also confirmed that taxpayers will be able to resolve their disputes under the scheme until January 31, 2025.
How Many Tax Cases Will Be Settled?
The government expects that this scheme will help resolve approximately 2.7 crore direct tax demands, totaling around 35 lakh crore rupees. This scheme aims to expedite the resolution of these cases and help the Income Tax Department clear pending tax appeals.
Required Forms
Four types of forms have been issued under the Vivad Se Vishwas Scheme:
- Form 1: For filing a declaration and undertaking.
- Form 2: For issuing a certificate by the authorities.
- Form 3: For providing payment details.
- Form 4: For full and final settlement of tax arrears.
Of these, Form 1 and Form 3 are the most important. Taxpayers must fill these forms accurately. These forms can be electronically submitted on the Income Tax Department’s e-filing portal (www.incometax.gov.in).
Conclusion
If you are also struggling with income tax disputes, now you have one more month to take advantage of this scheme. By January 31, 2025, you can resolve your disputed taxes at a reduced amount. If you haven’t yet taken advantage of this scheme, this might be your last chance.
The Vivad Se Vishwas Scheme is an effective measure to help taxpayers settle their tax disputes, reducing their tax burden.
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