How to apply for Vivad se Vishwas Scheme 2024

 How to apply for Vivad se Vishwas Scheme 2024

How-to-apply-for-Vivad-se-Vishwas-Scheme-2024
As of my knowledge cutoff in October 2023, the “Vivad se Vishwas Scheme” (VSV Scheme) was introduced by the Government of India in 2020 to resolve pending direct tax disputes. However, the scheme was initially applicable for a limited period, and its extension or reintroduction Oct 2024 has been officially announced vide Circular 12/2024 dated  15.10.2024 for the process to avail benefit of this scheme. If the government reintroduces or extends the scheme in 2024, the application process would likely follow a similar structure to the original scheme.

Important Deadlines:

The deadline for filing declarations under the scheme has been extended to January 31, 2025. 

Declarations filed after this date will incur an additional 10% tax liability. Therefore, it's advisable to complete the process before the deadline to avoid extra charges.

Additional Information:

The scheme became effective on October 1, 2024. 

The payable amount varies based on the nature of the tax arrears and whether the taxpayer is a new or old appellant. For instance, new appellants settling disputed tax, interest, or penalty are required to pay 100% of the disputed tax if the declaration is filed on or before January 31, 2025, and 110% if filed thereafter. 


Here’s a general guide on how to apply for the Vivad se Vishwas Scheme based on the previous version:

Steps to Apply for Vivad se Vishwas Scheme ( reintroduced in 2024):

1. Check Eligibility:

   - Verify if your tax dispute falls under the scope of the scheme. Typically, it covers pending appeals related to direct taxes (income tax, corporate tax, etc.) as of a specified date.

   - Ensure the dispute is eligible for resolution under the scheme.

2. Calculate the Amount Payable:

   - Determine the amount payable under the scheme based on the disputed tax amount and the timeline for payment.

   - The scheme usually offers a waiver of interest and penalties if the payment is made within the specified period.

3. File Form VSV-1 :

   - Log in to the Income Tax Department’s e-filing portal ([https://www.incometax.gov.in](https://www.incometax.gov.in)).

   - Fill out Form VSV-1, which is the declaration form for the scheme.

   - Provide details of the disputed tax, appeal, and the amount payable.

4. Upload Required Documents:

   - Attach necessary documents, such as the order copy of the disputed tax case, challan details, and any other supporting documents.

5. Pay the Amount:

   - Pay the amount calculated under the scheme using the designated payment methods (e.g., online payment, challan, etc.).

   - Ensure you keep the payment receipt for future reference.

6. Submit the Form:

   - Submit the completed Form VSV-1 along with the payment details on the e-filing portal.

7. Receive Discharge Certificate:

   - Once the application is processed and approved, the Income Tax Department will issue a Discharge Certificate.

   - This certificate confirms the resolution of the dispute, and no further appeals or claims can be made on the same matter.

Key Points to Remember:

- The scheme is voluntary, and taxpayers must opt-in to resolve their disputes.

- The scheme typically offers a full waiver of interest and penalties if the payment is made by the specified deadline.

- If the scheme is reintroduced in 2024, the government may announce specific deadlines and updated guidelines.

Stay Updated:

- Monitor official announcements from the Ministry of Finance or the Income Tax Department for any updates on the reintroduction or extension of the Vivad se Vishwas Scheme in 2024.

- Visit the official Income Tax e-filing portal for the latest notifications and forms.

If the scheme is reintroduced, the process will likely be streamlined and user-friendly, similar to the previous version.


Rajveer Singh

Tax Law Page, led by Rajveer Singh, simplifies Tax Laws with 19+ years of expertise, offering insights, compliance strategies, and practical solutions.

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