CBDT launches Direct Tax Vivad Se Vishwas Scheme 2024; set to take effect on October 1

Key features of the DTVSV Scheme include lower settlement amounts for "new appellants" compared to "old appellants."

The Central Board of Direct Taxes (CBDT) has officially announced the Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV), which is set to take effect on October 1, 2024. This scheme aims to resolve outstanding income tax disputes and was introduced in the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman, the Ministry of Finance said in its press release.

Key features of the DTVSV Scheme include lower settlement amounts for "new appellants" compared to "old appellants." Additionally, taxpayers who submit their declarations by December 31, 2024, will also benefit from reduced settlement amounts, the press notification added.

According to the ministry, to implement the scheme, four specific forms have been introduced:

Form-1: Declaration and undertaking by the declarant
Form-2: Certificate issued by the Designated Authority
Form-3: Intimation of payment by the declarant
Form-4: Order for full and final settlement of tax arrears
Form-1 must be filed separately for each dispute, unless both the appellant and the income tax authority have filed appeals against the same order, allowing for a single Form-1 submission in such cases. Payment notifications should be submitted using Form-3, along with proof of withdrawal of any related appeals.

Forms 1 and 3 will need to be filed electronically and will be accessible on the Income Tax Department's e-filing portal.

(This is a developing story. More details to follow)