Vivad Se Vishawas Scheme 2024: New FAQs on eligibility, tax amount payable issued

The Income Tax Department has released new frequently asked questions (FAQ) about Direct Tax Vivad Se Vishawas (DTVSV) Scheme 2024. This scheme (announced in Budget 2024) is useful for those taxpayers who want to settle their pending income tax disputes with the Income Tax Department by paying the disputed tax amount as well as a specified percentage additionally of it. The tax department will waive off all the interest and penalties that are additionally imposed to close the dispute.

The Vivad se Vishwas scheme, first launched in 2020 to tackle outstanding tax disputes, was made operational on October 1. This scheme allows taxpayers to address certain pending tax matters. Following its effective implementation, a revised version has been incorporated by Finance Minister Nirmala Sitharaman in the Union Budget for 2024 to handle disputes occurring after that period.

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Here are the new FAQs

Before filing declaration under the DTVSV (Direct Tax Vivad se Vishwas Scheme), 2024 if his appeal was disposed off on merits or dismissed as withdrawn for the purposes of the scheme, can the taxpayer file declaration under the scheme?

Yes, such cases are eligible for settlement under the Scheme as appeal was pending as on 22.7.2024. Disputed tax will be calculated in the same manner as if the appeal pending on 22.7.2024 is yet to be disposed off.

If a taxpayer has filed a declaration in Form-I. After the declaration, the appeal has been disposed off by the concerned authority. Is this case eligible for settlement?

Yes, this case would also be eligible for settlement.

Time limit for filing of appeal has expired before July 22, 2024 but an appeal along with application for condonation of delay has been filed after this date. Can the taxpayer opt for the Scheme in such a case?

No. Appeal has to be pending as on July 22, 2024 for a taxpayer to opt for the Scheme. Accordingly, such cases shall not be eligible.

Suppose an appeal has been filed before July 22, 2024 with an application for condonation of delay which is also filed before July 22, 2024. This appeal has been admitted by allowing condonation of delay prior to the date of filing of declaration under the Scheme. Can such a taxpayer opt for the scheme?

Yes. The taxpayer can opt for settlement under the Scheme in such cases. 

Whether appeal filed against intimation u/s 143(1) of the Act and pending as on July 22, 2024 is eligible for the DTVSV Scheme, 2024?

Yes. Any appeal filed against intimation u/s 143( I) of the Act and pending as on 22nd July, 2024 is eligible for settlement under the Scheme.

When review petitions are pending before High Courts or Supreme Court, whether those cases are eligible for settlement under DTVSV Scheme, 2024?

No. Pendency of review petition does not tantamount to pending before High Courts or pendency of an appeal. so, it would not tantamount to pendency of an appeal.

Whether DTVSV Scheme, 2024 can be availed in a case where proceedings are pending before Income Tax Settlement Commission (ITSC) or where writ has been filed against the order of ITSC?

No, not in these cases.

Whether appeals against penalties assessment like penalty uls 271 B, 271BA, 2710A of the Act etc. are also waived upon settlement of appeal relating to disputed tax?

No, appeal against such penalty order is required to be that is not related to quantum settled separately.