This scheme allows taxpayers to settle ongoing tax disputes by paying a reduced amount. Without the extension, taxpayers would have faced an additional 10% tax penalty for applying. The extension provides significant relief for those who have yet to apply, economic times reported.
In a circular issued on December 30, 2024, the Income Tax Department stated, “The Central Board of Direct Taxes (CBDT), under its authority in section 97(2) of the Direct Tax Vivad Se Vishwas Scheme 2024, has extended the deadline for determining the payable amount under section 90 of the Scheme to January 31, 2025.”
The circular further clarified, “If a declaration is filed on or before January 31, 2025, the payable amount will be determined as per column (3) of the table in section 90 of the Scheme. However, for declarations filed after February 1, 2025, the payable amount will be calculated as per column (4) of the same table.”
Announced in the 2024 Budget, the Vivad Se Vishwas Scheme offers taxpayers a chance to resolve pending tax disputes with the Income Tax Department. Under this scheme, taxpayers must pay the disputed tax amount along with a specified percentage. Once the payment and application are submitted, the Income Tax Department will waive additional penalties and interest, effectively closing the dispute.
