The Central Board of Direct Taxes (CBDT) has recently introduced a new initiative aimed at simplifying the resolution of income tax disputes in India: ‘The Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV)’. The scheme is set to be effective from October 1, 2024.
The scheme was announced by the Union Finance Minister Nirmala Sitharaman during the Union Budget presentation 2024-2025. The main aim of this scheme is to provide a clear and simplified path for taxpayers of the country with outstanding income tax to settle out their disputes effectively.
What are the key features of the DTVSV Scheme?
The scheme categorises taxpayers into two groups: “new appellants” and “old appellants.” New appellants will benefit from lower settlement amounts, making it easier for them to resolve their cases without incurring hefty costs.
▪️ CBDT notifies Rules and Forms for Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024
▪️ The Scheme to come into force with effect from 1st Oct. 2024
▪️ DTVSV Scheme provides for lesser settlement amounts for a ‘new appellant’ in comparison to an ‘old appellant’
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— PIB India (@PIB_India) September 21, 2024
In addition to this, taxpayers who submit their declarations by December 31, 2024, will also have a reduced settlement amounts.
What is the Process?
To participate in the DTVSV Scheme, taxpayers must fill out one of four designated forms:
Form-1: Form for filing declaration and Undertaking by the declarant
Form-2: Form for Certificate to be issued by Designated Authority
Form-3: Form for Intimation of payment by the declarant
Form-4: Order for Full and Final Settlement of tax arrears by Designated Authority
✅CBDT notifies Rules & Forms for Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV, 2024).
✅ The DTVSV, 2024 announced by the Hon’ble Finance Minister in her budget speech, shall come into force from 01.10.2024.
✅ Rules and Forms for enabling the Scheme have been notified… pic.twitter.com/XHMxq4EvKc
— Income Tax India (@IncomeTaxIndia) September 21, 2024
Each form serves a distinct purpose in the resolution process. Moreover, Form-1 must be filed separately for each dispute, but if both the appellant and the income tax authority have appealed regarding the same order, they can submit a single Form-1.
Electronic Submission
In a bid to make the filing more easier, Forms 1 and 3 will need to be submitted electronically via the Income Tax Department’s e-filing portal at www.incometax.gov.in.
“For detailed provisions of the DTVSV Scheme, 2024, section 88 to section 99 of the Finance (No. 2) Act, 2024 may be referred to alongwith Direct Tax Vivad Se Vishwas Rules, 2024,” said in the release.
