CBDT Notifies Rules and Forms for Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024
In a significant move towards resolving pending income tax disputes, the Central Board of Direct Taxes (CBDT) has officially notified the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024. This initiative, which comes into effect from 1st October 2024, is part of the broader measures announced by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, in the Union Budget 2024-25. The DTVSV Scheme aims to simplify the settlement of income tax disputes, encouraging taxpayers to settle their pending appeals with reduced payments.
Key Highlights of the DTVSV Scheme, 2024:
- Lesser Settlement for New Appellants
One of the central features of the DTVSV Scheme is its provision for lesser settlement amounts for “new appellants” in comparison to “old appellants.” This approach encourages taxpayers to resolve their disputes promptly, reducing the financial burden for those who have more recently filed appeals. - Incentive for Early Filings
Taxpayers who file their declarations on or before 31st December 2024 will benefit from reduced settlement amounts. Those who file after this date will not receive the same concessions, providing a clear incentive for early participation in the scheme. - Forms for the DTVSV Scheme
To streamline the process, four separate forms have been notified under the scheme. These include:- Form-1: For filing the declaration and undertaking by the declarant.
- Form-2: A certificate issued by the Designated Authority.
- Form-3: Intimation of payment by the declarant.
- Form-4: An order for full and final settlement of tax arrears by the Designated Authority.
- These forms ensure that the process is transparent, efficient, and accessible to taxpayers.
- Filing and Declaration Process
- Form-1 must be filed separately for each dispute. However, if both the appellant and the income-tax authority have filed appeals concerning the same order, a single Form-1 will suffice.
- The intimation of payment, along with proof of withdrawal of any appeal or claim, must be submitted in Form-3.
- Both Form-1 and Form-3 must be submitted electronically via the Income Tax Department’s e-filing portal: www.incometax.gov.in.
Detailed Provisions and Reference
For those seeking to explore the detailed provisions of the scheme, sections 88 to 99 of the Finance (No. 2) Act, 2024, along with the Direct Tax Vivad Se Vishwas Rules, 2024, outline the legal and procedural aspects. Notification No. 104/2024 in G.S.R 584(E), dated 20th September 2024, provides additional context for the rules and forms that enable the scheme’s implementation.
A Step Towards Efficient Litigation Management
The DTVSV Scheme, 2024, reflects the Indian Government’s continuous efforts to improve litigation management and reduce the backlog of unresolved income tax disputes. By providing incentives for early resolution and offering a structured approach to settlements, the scheme encourages taxpayers to settle their pending appeals at reduced amounts.
This initiative is expected to streamline tax compliance and enhance the efficiency of the income tax system, ultimately contributing to better revenue collection and reduced litigation.
Taxpayers are encouraged to take advantage of the scheme and resolve their pending disputes swiftly, ensuring a smoother and more transparent tax process.
