Vivad Se Vishwas Scheme 2024: I-T dept extends deadline to avail interest, penalty waiver till January 31

Vivad Se Vishwas Scheme 2024: The income tax (I-T) department on Monday, December 30, extended the due date for determining the tax dues and filing declaration under the Vivad Se Vishwas scheme for waiver of interest and penalty, by a month, till January 31, 2025. The previous deadline for the settling income tax disputes under the scheme by the taxman was December 31, 2024.

According to the original rules of the Direct Tax Vivad Se Vishwas scheme, taxpayers filing declaration before December 31, 2024, had to pay 100 per cent of the disputed tax demand. Interest and penalty would be waived in such cases. The Central Board of Direct Taxes (CBDT) extended the due date for determining the amount payable from December 31, 2024, to January 31, 2025. 

Also Read: Vivad Se Vishwas Scheme 2024: Income tax department releases FAQs to address queries of taxpayers

Vivad Se Vishwas Scheme 2024: Deadline to settle tax disputes extended

The CBDT put out a notification in this regard on Monday. According to the circular, for the declarations filed on or after February 1, 2025, a 110 per cent of the disputed tax demand will have to be paid by the taxpayer. All appeals that are still outstanding as of July 22, 2024, will be eligible for the Vivad Se Vishwas Scheme 2024 regardless of whether they are eventually withdrawn or disposed of.

The scheme can be availed by taxpayers who have disputes/appeals, including writs, special leave petitions(Appeals) whether filed by the taxpayer or the tax authorities are pending as on July 22, 2024, before the Supreme Court, High Courts, Income Tax Appellate Tribunal, Commissioner/Joint Commissioner (Appeals). Around 2.7 crore direct tax demands totalling ₹35 lakh crore are being disputed at legal foras.

The Vivad Se Vishwas Scheme was initially announced in the Union Budget for 2024-25. On September 20, the CBDT notified the Scheme that came into force with effect from October 1. The Scheme provides for lesser settlement amounts for a ‘new appellant’ in comparison to an ‘old appellant’. Also, it provides for lesser settlement amounts for taxpayers who file declaration on or before January 31, 2025, in comparison to those who file thereafter.