What is the Vivad se Vishwas scheme? CBDT extends deadline; Cases cannot be beaten till 31 January

Vivad se Vishwas scheme: Taxpayers who filed the declaration before December 31, 2024 would have to pay 100 per cent of the disputed tax demand. In such cases, a provision has been made to waive interest and penalty.

Income Tax Relief: If you also have any kind of dues from the Income Tax Department for the last financial year or if you have any kind of penalty, then this news is for you. Yes, the Income Tax Department has extended the date for filing information for fixing tax arrears and waiving interest and penalty under the Vivad se Vishwas scheme till January 31.

Deadline extended from December 31 to January 31

As per the original rules of the Direct Tax Dispute to Trust Scheme, 2024, taxpayers who filed the declaration before December 31, 2024, have to pay 100 per cent of the disputed tax demand. In such cases, a provision has been made to waive interest and penalty. In a circular issued by the Central Board of Direct Taxes (CBDT), it was said that the last date for fixing the amount payable under the Vivad se Vishwas scheme has been extended from December 31, 2024 to January 31, 2025.

According to the

circular, taxpayers will have to pay 110 percent of the Outstanding Tax Demand on the declarations made on or after February 1, 2025. The benefit of this scheme can be taken by taxpayers whose case is in dispute or appeals have been filed. This includes writs and special leave petitions (appeals). Whether they are filed by taxpayers or tax officials. This includes cases that will be pending before the Supreme Court, High Courts, Income Tax Appellate Tribunals, Commissioner/Collector Tribunals as on July 22, 2024. Pending before the Joint Commissioner (Appeals).

About 2.7 crore direct tax demands worth about Rs 35 lakh crore are being disputed 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 scheme came into effect from October 1, 2024.

What is the Vivad se Vishwas scheme?

The Vivad se Vishwas Yojana is a special scheme launched by the Government of India, which aims to settle old disputes related to income tax and provide relief to taxpayers. Under this scheme, taxpayers can settle their disputed tax cases without any lengthy legal process. In this, the pending dispute between the Income Tax Department and the taxpayer is settled quickly and easily. Also, taxpayers do not need to go through a lengthy legal process.