Clarifications on the Vivad Se Vishwas Scheme, 2024: Empowering Taxpayers

The Income Tax Department clarified the Vivad Se Vishwas Scheme extending eligibility for pending appeals as of July 22, 2024. Taxpayers filing declarations by December 31, 2024, can resolve disputes at a lower rate. New FAQs address transfer pricing and eligibility ambiguities, increasing accessibility for dispute resolution.

The Income Tax Department has clarified that appeals pending as of July 22, 2024, are eligible under the Vivad Se Vishwas Scheme, 2024, irrespective of their disposal status. This announcement aims to assist taxpayers in resolving pending disputes.

The Central Board of Direct Taxes (CBDT) has released a second set of Frequently Asked Questions (FAQs) to aid taxpayers in understanding the scheme. Taxpayers must file their declarations by December 31, 2024, even if payments follow later.

New clarifications address the applicability of secondary adjustments under transfer pricing and emphasize the government's intent to reduce litigation. This initiative comes after the scheme's announcement in the 2024-25 Budget.

(With inputs from agencies.)