Income Tax News: Taxpayers Take Note! File Tax Dispute Under Vivad Se Vishwas Before THIS Date to Avail Benefits

Income Tax News: The Income Tax Department has issued an important update for taxpayers with pending tax disputes. In a new notification dated April 8, 2025, and shared via their official X (formerly Twitter) handle on April 9, the Central Board of Direct Taxes (CBDT) announced that April 30, 2025, is the final date to file declarations under the Direct Tax Vivad se Vishwas Scheme, 2024. This update is part of the government's efforts to reduce litigation and provide a smooth, time-bound resolution for ongoing income tax cases.

Let’s break down what this means and how you can benefit.

What is the Vivad se Vishwas Scheme 2024?

The Direct Tax Vivad se Vishwas Scheme was introduced to simplify and resolve income tax disputes without long legal processes. As per the scheme, taxpayers can settle their pending cases by paying a reduced amount, based on the stage of appeal and who initiated it.

There are two categories of taxpayers under this scheme —

• New appellants, who are filing appeals for the first time
• Old appellants, whose cases have been pending

New appellants are eligible for more relief, which means they will have to pay less to settle the dispute. Additionally, if a taxpayer submits their declaration before December 31, 2024, they can avail extra benefits and save even more.

April 30 Is the Final Date to File Your Declaration

According to the CBDT notification (S.O. 1650(E)), issued under the powers of the Finance (No. 2) Act, 2023, April 30, 2025, has been officially notified as the last date to file a declaration for any tax arrear under this scheme. The declaration has to be made to the designated authority as per Section 90 of the Act.

CBDT notifies 30.04.2025 as the last date, on or before which a declaration in respect of tax arrears can be filed by the declarants to the designated authority under the Direct Tax Vivad se Vishwas Scheme, 2024.

Notification S.O. 1650(E) dated 08.04.2025 has been published in… pic.twitter.com/nrKx2QWuod

— Income Tax India (@IncomeTaxIndia) April 9, 2025

So, if you have any pending tax disputes, now is the time to act. Delay may lead to the loss of benefits offered under this scheme.

How to File Your Declaration

To participate in the scheme, taxpayers must submit Form-1 for each dispute. However, if both the taxpayer and the Income Tax Department have appealed against the same order, only one Form-1 is required.

The process is designed to be simple, quick and stress-free. With this scheme, the government aims to reduce the burden of litigation for taxpayers and help them resolve their tax matters without unnecessary delays.