According to the original rules of the Direct Tax Vivaad se Vishwas Scheme, 2024, taxpayers who file declaration before December 31, 2024 have to pay 100 per cent of the disputed tax demand. There is a provision to waive interest and penalty in such cases.
Income Tax Department on Monday extended the date for filing information for determining tax dues and waiver of interest and penalty under the Dispute to Vishwas scheme to January 31. According to PTI news, the Central Board of Direct Taxes (CBDT) said in a circular that the due date for determining the amount payable under the Dispute to Vishwas scheme has been extended from December 31, 2024 to January 31, 2025.
Provision for waiving interest and penalty
According to the news, as per the original rules of the Direct Tax Dispute to Vishwas Scheme, 2024, taxpayers filing the declaration before December 31, 2024 have to pay 100 per cent of the disputed tax demand. There is a provision to waive interest and penalty in such cases. Dispute to Vishwas (scheme) is an attempt by the Government of India (GOI) to end pending direct tax disputes. The Vivaad se Vishwas scheme helps resolve old issues related to direct tax and allows taxpayers to invest time and resources in conducting business.
Then 110 percent of the taxpayer will have to pay
According to the circular, 110 percent of the disputed tax demand on declarations made on or after February 1, 2025 will have to be paid by the taxpayer. This scheme can be availed by those taxpayers in whose case there is a dispute / appeal has been filed. This includes writs and special leave petitions (appeals). Whether they have been filed by the taxpayer or the tax officers. This includes those cases which are pending before the Supreme Court, High Court, Income Tax Appellate Tribunal, Commissioner / Joint Commissioner (Appeal) till July 22, 2024.
Dispute is going on on many direct tax demands
Let us tell you that about 2.7 crore direct tax demands of about Rs 35 lakh crore are under dispute on various legal platforms. The Vivaad se Vishwas Scheme, 2024 was announced in the budget for the financial year 2024-25 presented on July 23. The scheme came into effect from October 1, 2024.
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