New Tax Dispute Resolution Scheme Announced by Finance Minister Nirmala Sitharaman
The Central Board of Direct Taxes (CBDT) has introduced the Direct Tax Vivad Se Vishwas Scheme, 2024, as announced by Finance Minister Nirmala Sitharaman during the Union Budget 2024-25. This scheme, effective from October 1, aims to resolve pending income tax disputes.
Key Features of the Scheme
The scheme offers reduced settlement amounts for new appellants compared to old appellants, encouraging early engagement. Taxpayers who file their declarations before December 31, 2024, will be eligible for further reductions.
Forms and Filing Process
Four key forms have been introduced:
- Form-1: For filing declarations and undertakings by the declarant.
- Form-2: For certificates issued by the designated authority.
- Form-3: For intimating payment by the declarant.
- Form-4: For the final settlement order.
Taxpayers must file Form-1 separately for each dispute, but a single Form-1 will suffice if both the appellant and the income tax authority have filed appeals on the same order. After payment, the declarant must submit Form-3 to notify the payment to the designated authority, along with proof of withdrawal of any appeal, writ petition, special leave petition, or claim.
Forms 1 and 3 must be submitted electronically through the Income Tax Department’s e-filing portal, www.incometax.gov.in, ensuring a smooth, digital-first approach.
Government’s Commitment
The DTVSV Scheme, 2024 reflects the government’s commitment to reducing tax litigation and encouraging prompt resolution of tax disputes. By implementing this scheme, the government aims to ease the burden on the judicial system, reduce backlog, and create a more taxpayer-friendly environment.
Doubts Revealed
Tax Dispute Resolution Scheme -: This is a plan to help people and the government solve arguments about taxes without going to court.
Finance Minister Nirmala Sitharaman -: She is the person in charge of managing the money and finances of India.
Central Board of Direct Taxes (CBDT) -: This is a group in the government that looks after taxes that people and companies have to pay directly, like income tax.
Direct Tax Vivad Se Vishwas Scheme, 2024 -: This is a new plan to help people settle their tax disputes with the government by paying less money.
Income tax disputes -: These are arguments between people or companies and the government about how much tax should be paid.
e-filing portal -: This is a website where people can fill out and send their tax forms online.
Tax litigation -: This means taking legal action or going to court over tax issues.
Judicial system’s burden -: This refers to the amount of work and cases that courts have to handle.