Deadline To Settle Tax Disputes Under Vivad Se Vishwas 2024 Extended To April 30

The Ministry of Finance has officially notified April 30 as the last date to apply for the Direct Tax Vivad Se Vishwas Scheme, 2024 (VSV 2.0), giving taxpayers a final opportunity to settle pending tax disputes without going to court.

As per the government’s notification, taxpayers must file their declaration under Section 90 of the Finance (No. 2) Act, 2024, before the designated authority by this date.

The scheme allows individuals and companies to resolve ongoing tax disputes by paying the disputed amount of tax along with a specified percentage. Once the payment is made, the Income Tax Department will waive off interest, penalty and prosecution linked to the case.

For example,  if the tax department claims you owe Rs 25,000 on an income of Rs 150,000, but you argue your tax should be Rs 10,000 on Rs 100,000, you can settle the case by paying the difference of Rs 15,000 plus a small additional percentage. After this payment and submission of the application, the case will be closed with no penalties or further action.

Only tax disputes that were pending on or before July 22, 2024, are eligible under this scheme. According to the rules:

• Appeals must relate to orders passed on or before July 22, 2024.

• Appeals must be filed in time without delay condonation.

• Disputes can be pending before CIT(A), ITAT, High Courts, Supreme Court, or Dispute Resolution Panel (DRP).

Other eligible cases include:

• Objections filed before DRP but not yet directed.

• DRP-directed cases where the final order is still pending.

• Revision applications pending under Section 264.

Once the declaration (Form 1) is filed:

1. The tax authority issues a certificate (Form 2) within 15 days.

2. Taxpayers must pay the specified amount within the next 15 days and file Form 3.

3. The final confirmation is given in Form 4, and the case is closed.