Income Tax News: From Eligibility Queries to Late ITR Filing, IT Dept. Answers Key Questions Under Vivad Se Vishwas Scheme

Income Tax News: The Income Tax Department is actively running the Vivad Se Vishwas Scheme to assist taxpayers in resolving their tax-related disputes efficiently. Common issues like filing incorrect Income Tax Returns (ITR) or submitting wrong forms often result in tax notices. This scheme aims to simplify dispute resolution and provide much-needed relief to taxpayers.

IT Department Shares FAQs to Clarify Vivad Se Vishwas Scheme

To address stakeholder queries and ensure clarity on the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, CBDT has issued Guidance Note 2/2024 in the form of Frequently Asked Questions (FAQs) through Circular No. 19/2024, dated 16.12.2024.

✅This Guidance Note follows the…

— Income Tax India (@IncomeTaxIndia) December 17, 2024

In a recent update, the Income Tax Department shared a series of FAQs on its official handle on X (formerly Twitter), addressing common queries under the scheme. These updates, issued by the Central Board of Direct Taxes (CBDT), offer clarity and address feedback from taxpayers.

Key FAQs Answered by the Income Tax Department Under the Vivad Se Vishwas Scheme

The CBDT's FAQs address crucial questions about eligibility and procedures under the Vivad Se Vishwas Scheme. Here are some of the key clarifications:

1. Can taxpayers file a declaration if their appeal is disposed of after July 22, 2024?

Yes. The department clarified that if an appeal was pending as of July 22, 2024, but subsequently disposed of before filing the declaration, such cases are still eligible under the scheme. Disputed tax will be calculated as though the appeal is still pending.

2. What happens if the appeal is disposed of after filing Form-1?

If a taxpayer files a declaration in Form-1 and the concerned authority disposes of the appeal afterward, the case remains eligible for settlement under the Vivad Se Vishwas Scheme.

3. Is the scheme applicable if the appeal is filed after July 22, 2024, along with a condonation of delay application?

No. The scheme requires the appeal to be pending as of July 22, 2024. Any appeal filed after this date, even with a condonation application, does not qualify for settlement under the scheme.

4. Can taxpayers opt for the scheme if condonation of delay was allowed before filing the declaration?

Yes. If the appeal and condonation of delay application were both filed on or before July 22, 2024, and the condonation was allowed before the declaration, the case qualifies for settlement. Such cases are considered pending appeals as of July 22, 2024.

Late ITR Filing: An Additional Opportunity for Taxpayers

For taxpayers who missed the July 31, 2024, deadline for filing Income Tax Returns, the department is offering another chance to file late ITRs. However, filing delayed returns comes with a penalty. The last date to file a late ITR is December 31, 2024.

Golden Opportunity for Taxpayers Under Vivad Se Vishwas Scheme

The Vivad Se Vishwas Scheme offers a valuable chance for taxpayers to resolve disputes without prolonged litigation. It enables taxpayers to settle issues, avoid penalties, and prevent further complications with the Income Tax Department.