Income Tax: Big news for taxpayers! Government brings ‘Vivaad se Vishwas 2.0’ scheme, discount will be given on outstanding tax
Form-1 and Form-3 will be submitted electronically by the declarant. These forms will be made available on the e-filing portal of the Income Tax Department. This scheme is a step towards reducing litigation.
Income Tax: To provide relief to taxpayers who are worried about paying the outstanding tax, the government has once again come up with the ‘Vivaad se Vishwas 2.0’ scheme. This scheme will start from the first of next month. In this scheme, a big discount will be given on paying the outstanding tax. Let us tell you that in her budget speech, Finance Minister Nirmala Sitharaman had announced the Direct Tax ‘Vivaad se Vishwas’ Scheme 2024 to resolve pending appeals in the case of income tax disputes. This scheme will come into effect from October 1, 2024.
Tax exemption will be available
The Income Tax Department said on Saturday that it has notified the dispute resolution scheme ‘Vivaad se Vishwas 2.0’. The scheme offers a lower settlement amount for taxpayers filing declarations on or before December 31, 2024 as compared to those filing after that. Apart from this, rules and forms have also been notified to enable the scheme. The scheme provides for lower settlement amount for ‘new appellant’ as compared to ‘old appellant’, the Central Board of Direct Taxes (CBDT) said in a statement. The scheme provides for lower settlement amount for taxpayers filing declaration on or before December 31, 2024 as compared to those filing thereafter.
Four different forms notified
Form-1: Form for filing declaration and undertaking by declarant. Form-2: Form for certificate to be issued by specified authority. Form-3: Form for intimation of payment by declarant. Form-4: Order for full and final settlement of tax dues by specified authority. The scheme also provides that Form-1 shall be filed separately for each dispute, provided that where both the appellant and the income tax authority have filed appeal in respect of the same order, in such a case a single Form-1 shall be filed. Intimation of payment is to be given in Form-3 and it is to be submitted to the specified authority along with the appeal, objection, application, writ petition, special leave petition or proof of withdrawal of the claim.
Form-1 and Form-3 will be submitted electronically by the declarant. These forms will be made available on the e-filing portal of the Income Tax Department. This scheme is a step towards reducing litigation. Let us tell you that about 2. 7 crore direct tax demands are under dispute at various legal forums, the total amount of which is about Rs 35 lakh crore. The first ‘Vivaad se Vishwas’ scheme for cases under direct taxes was brought by the government in 2020. About 1 lakh taxpayers availed the scheme and the government had earned tax of about Rs 75,000 crore.
