Decoding the New Vivad Se Vishwas 2024: A Guide to Tax Dispute Resolution

The income tax department released a guidance note on the Vivad Se Vishwas scheme 2024, detailing eligibility and payment requirements. Taxpayers with pending disputes or appeals as of July 22, 2024, are eligible. Declarations filed by December 31, 2024, require 100% payment of disputed tax. Later declarations necessitate 110%.

The income tax department has issued a comprehensive guidance note on the Vivad Se Vishwas scheme 2024. This document, presented in the form of frequently asked questions (FAQs), elucidates eligibility and payment structures for participants of this tax dispute resolution initiative.

Since its announcement, the department has fielded numerous queries concerning the scheme's provisions, which became effective on October 1, 2024. Although the closing date remains unannounced, the scheme aims to resolve legal tax disputes pending before various judicial bodies as of July 22, 2024.

To benefit from the scheme, eligible taxpayers must file declarations by December 31, 2024, mandating full settlement of disputed tax demands. Declarations from January 1, 2025, will incur a 110 percent payment obligation. The scheme aims to facilitate smoother dispute resolution by waiving interest and penalties for compliant taxpayers.

(With inputs from agencies.)