The Direct Tax Vivad Se Vishwas Scheme, 2024 [1] (VSV 2.0) which provides an opportunity to taxpayers to settle disputes pending as on 22 July 2024, and those disputes whose time to file an appeal had not expired as on 22 July 2024, in relation to tax, interest, penalty or fees payable under the Income Tax Act, 1961. Taxpayers can settle such disputes by filing a declaration in the prescribed form to the designated authority (DA) and by paying the prescribed amount. Once the disputed tax is settled under VSV 2.0, the taxpayer will enjoy complete waiver and immunity from interest, penalty and prosecution in relation to tax arrears which are the subject matter of the settlement.
VSV 2.0 commenced from 1 October 2024 and is to be in force till a date to be notified. The Central Board of Direct Taxes (CBDT) has now notified [2] 30 April 2025 as the last date, on or before which a declaration in respect of tax arrears may be filed to the DA. While no fresh declarations can be filed after 30 April 2025, a declaration filed on or before 30 April 2025 shall be processed as per timelines in VSV 2.0, and obligation to pay amount specified in such declaration will arise only after the DA determines the amount payable pursuant to the declaration.
[1] Refer our past alerts titled
"Central Government notifies commencement date of Direct Tax Vivad Se Vishwas Scheme, 2024 (VSV 2.0) and rules and forms for settlement", dated 24 September 2024;
"CBDT issues Frequently Asked Questions in relation to Direct Tax Vivad Se Vishwas Scheme, 2024", dated 17 October 2024 ;
"CBDT issues second round of frequently asked questions in relation to Direct Tax Vivad Se Vishwas Scheme, 2024", dated 18 December 2024;
"Scope of Direct Tax Vivad Se Vishwas Scheme, 2024 expanded to cover cases where orders had been passed on or before 22 July 2024 where time to file an appeal had not expired" , dated 21 January 2025;
[2] Notification dated 8 April 2025 [F. No. 32/2025/ F. No. 370142/9/2025-TPL]
No comments:
Post a Comment