Relief For Taxpayers As Vivaad Se Vishwas Scheme Deadline Extended To January 31

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The circular issued by the CBDT mentioned that taxpayers will be required to pay 110% of the disputed tax demand for declarations made on or after February 1, 2025

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In a relief to taxpayers, the Income Tax Department announced on Monday an extension for the Vivaad Se Vishwas Scheme. This scheme, introduced by the government to settle tax disputes, can now be availed until January 31, 2025, extending the previous deadline of December 31, 2024.

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Under the rules of the Direct Tax Vivaad Se Vishwas Scheme, 2024, taxpayers filing declarations before December 31, 2024 were required to pay 100 per cent of the disputed tax demand. In these cases, provisions for waiving interest and penalties were included.

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CBDT extends due date for determining amount payable as per column (3) of Table specified in section 90 of Direct Tax Vivad Se Vishwas Scheme, 2024 from 31st December, 2024 to 31st January, 2025.

Circular No. 20/2024 dated 30.12.2024 issuedhttps://t.co/uYGf1Oh3g2 pic.twitter.com/agjuRsMHqg

— Income Tax India (@IncomeTaxIndia) December 30, 2024

The Central Board of Direct Taxes (CBDT) issued a circular stating that the due date for determining the amount due under the Vivaad se Vishwas scheme has been extended from December 31, 2024 to January 31, 2025. The circular also outlined that for declarations made on or after February 1, 2025, taxpayers will be required to pay 110% of the disputed tax demand.

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Taxpayers involved in disputes or who have filed appeals can benefit from this scheme. This encompasses writs, special leave petitions (appeals), and cases pending before the Supreme Court, High Courts, Income Tax Appellate Tribunal, Commissioner/Joint Commissioner (Appeals) until July 22, 2024, irrespective of whether they were filed by taxpayers or tax officers.

Introduced in the 2024-25 financial year budget, the Vivaad Se Vishwas Scheme aims to address the substantial backlog of approximately 2.7 crore direct tax demands, amounting to around Rs 35 lakh crore, currently under dispute across various legal platforms. Announced in the budget presented on July 23 for the financial year 2024-25, the scheme came into effect on October 1, 2024.