The Central Board of Direct Taxes (CBDT) has introduced new rules and forms under the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, which will take effect from 1st October 2024.
This scheme aims to resolve pending income tax disputes by offering reduced settlement amounts, particularly benefiting new appellants.
Key Details of the DTVSV Scheme
Announced during the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman, the DTVSV Scheme was enacted under the Finance (No. 2) Act, 2024.
The scheme allows taxpayers to settle disputes with lower amounts, especially for those who file declarations by 31st December 2024. The settlement amount will be higher for those who file after this date.
Forms for Filing Under DTVSV
The scheme includes four essential forms:
- Form-1: Declaration and undertaking by the taxpayer
- Form-2: Certificate issued by the Designated Authority
- Form-3: Intimation of payment by the taxpayer
- Form-4: Final settlement order issued by the Designated Authority
Taxpayers must file Form-1 for each dispute separately, unless both parties have appealed the same order, in which case a single form will suffice.
Form-3 should be submitted along with proof of withdrawal of any related legal appeals.
These forms can be submitted electronically via the Income Tax Department’s e-filing portal at www.incometax.gov.in.
For more detailed information, taxpayers are advised to refer to sections 88 to 99 of the Finance (No. 2) Act, 2024 and the Direct Tax Vivad Se Vishwas Rules, 2024.
