New scheme to settle pending tax disputes from Oct 1: All you should know
The Central Board of Direct Taxes (CBDT) has recently released notification, saying the Direct Tax Vivad Se Vishwas Scheme 2024 will come into effect from October 1, 2024. This scheme seeks to minimise income tax litigation by offering taxpayers the opportunity to settle ongoing income tax appeals, writs, and petitions pending before various appellate authorities, including the Supreme Court and high courts, as of July 22, 2024.
“In exercise of the powers conferred by sub-section (2) of section 88 of the Finance (No. 2) Act, 2024 (15 of 2024), the Central Government hereby appoints the 1st day of October, 2024 as the date on which the Direct Tax Vivad Se Vishwas Scheme, 2024 shall come into force,” read the notification by the Ministry of Finance dated September 19, 2024.
The scheme was initially introduced in 2020 to facilitate the resolution of direct tax appeals pending as of January 31, 2020. These appeals were with the Commissioner of Income Tax (Appeals), the Income Tax Appellate Tribunal, high courts, or the Supreme Court. At that time, 483,000 appeals were pending, with Rs 4.96 trillion tied up in disputes. Currently, there are 544,000 appeals pending before the Commissioner of Income Tax (Appeals) alone, with the disputed amount rising to Rs 10.6 trillion.
