New Delhi
The Central Board of Direct Taxes (CBDT) has officially notified the Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV, 2024), following the announcement by the Union Minister for Finance during the Union Budget 2024-25. The scheme, aimed at resolving pending income tax disputes, will come into effect on October 1.
The scheme provides an opportunity for taxpayers to settle outstanding tax disputes efficiently. A reduced settlement amount is offered to ‘new appellants’ compared to ‘old appellants,’ encouraging early participation. Taxpayers who file their declarations before December 31, 2024, will be eligible for further reductions, promoting timely resolutions.
The scheme introduces four key forms: Form-1 for filing declarations, Form-2 for certificates by the designated authority, Form-3 for notifying payments, and Form-4 for final settlement orders. Taxpayers must file Form-1 for each dispute, but if both parties have filed appeals on the same order, a single Form-1 will suffice. After payment, Form-3 must be submitted to confirm payment and withdrawal of any related appeal or petition.
Forms 1 and 3 must be submitted electronically through the Income Tax Department’s e-filing portal. The DTVSV Scheme, 2024, is part of the government’s effort to reduce tax litigation, ease the judicial burden, and create a more taxpayer-friendly environment.
