The benefit of the scheme can be availed by those taxpayers in whose case there is a dispute/appeal has been filed.
The Income Tax Department on Monday extended the date for filing information for determining tax dues and waiver of interest and penalty under the Vivad Se Vishwas scheme till 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 Vivad Se Vishwas scheme has been extended from December 31, 2024 to January 31, 2025.
Provision to waive interest and penalty
According to the news, as per the basic rules of the Direct Tax Vivad Se Vishwas Scheme, 2024, taxpayers filing the declaration before December 31, 2024 have to pay 100 percent of the disputed tax demand. In such cases, a provision has been made to waive interest and penalty. Vivad Se Vishwas (Scheme) is an effort by the Government of India (GOI) to clear pending direct tax disputes. Vivad se Vishwas scheme helps in resolving the old tax related issues and allows the taxpayers to invest time and resources in running the business.
Then 110 percent taxpayer will have to pay
According to the circular, the taxpayer will have to pay 110 percent of the disputed tax demand for declarations made on or after February 1, 2025. The benefit of this scheme can be availed by those taxpayers in whose case there is dispute/appeal has been filed. This includes writs and special leave petitions (appeals). Whether they are filed on behalf of the taxpayer or the tax authorities. This includes those cases which are pending before the Supreme Court, High Court, Income Tax Appellate Tribunal, Commissioner/Joint Commissioner (Appeals) till July 22, 2024.
Controversy going on over many direct tax demands
Let us tell you that about 2.7 crore direct tax demands worth about Rs 35 lakh crore are under dispute on various legal platforms. The Vivad Se Vishwas Scheme, 2024 was announced in the Budget for the financial year 2024-25 presented on July 23. The plan came into effect from October 1, 2024.
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