Today, 31 December, marks the last day of the year, and with it comes an important update for taxpayers.
The Income Tax Department has extended the deadline for the Vivaad se Vishwas Yojana, originally set for 31 December.
Taxpayers now have until 31 January to settle their disputed tax cases. In other words, they have one more month to resolve these issues.
Purpose of the Scheme
The Vivaad se Vishwas scheme was introduced to help taxpayers resolve ongoing disputes with the Income Tax Department.
This scheme allows taxpayers to settle their cases by paying a fixed, reduced amount, thus providing financial relief and simplifying the resolution process.
The aim is to clear pending disputes quickly and foster trust between taxpayers and the government.
Benefits of the Scheme
Announced by Finance Minister Nirmala Sitharaman in the third budget of the Modi government, this scheme has been a useful tool for taxpayers.
If someone has a dispute with the Income Tax Department or in court, they can resolve it under this scheme by paying a lower amount than what might be required in the normal course of legal proceedings.
What Happens After 31 January 2025?
If taxpayers do not resolve their cases by the extended deadline of 31 January 2025, they will be required to pay 110% of the disputed amount.
This means an additional 10% penalty on the original payment. This could create significant financial difficulties for those who miss the deadline.
