The Central Board of Direct Taxes (CBDT) has announced an extension for the Direct Tax Vivad Se Vishwas Scheme 2024, providing taxpayers additional time to settle disputes under reduced tax rates. The new deadline for filing declarations is now January 31, 2025, offering relief to taxpayers amid stringent timelines.
The deadline for determining the payable amount under the Vivad Se Vishwas Scheme was initially set for December 31, 2024. However, taxpayers filing after this date would have faced an additional 10% tax liability. The extension allows taxpayers to avoid this extra burden by filing their declarations and settling disputes before the new cutoff date of January 31, 2025.
The scheme aims to resolve direct tax disputes by offering reduced tax rates, simplifying the process for taxpayers, and easing the litigation burden on tax authorities. However, applications submitted from February 1, 2025, will incur extra charges as per revised rates, increasing the cost of settlement for late applicants.
The amount payable under the scheme will differ based on the nature of the tax arrears and whether the taxpayer is a new or old appellant. Taxpayers are encouraged to review the updated terms and conditions of the scheme to understand their liability and make the necessary arrangements for timely settlement:
| Nature of Tax Arrears | Before Jan 31, 2025 | From Feb 01, 2025 |
| Disputed tax, interest, penalty (New appellant) | 100% of disputed tax | 110% of disputed tax |
| Disputed tax, interest, penalty (Old appellant) | 110% of disputed tax | 120% of disputed tax |
| Disputed interest/penalty/fee (New appellant) | 25% of the disputed amount | 30% of the disputed amount |
| Disputed interest/penalty/fee (Old appellant) | 30% of the disputed amount | 35% of the disputed amount |
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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