The Central Board of Direct Taxes (CBDT) has officially announced the implementation of the Direct Tax Vivad Se Vishwas Scheme, 2024, through Notification No. 103/2024, dated September 19, 2024. This scheme will come into effect from October 1, 2024.
Purpose of the Scheme:
The Direct Tax Vivad Se Vishwas Scheme, 2024 is designed to facilitate the resolution of disputes related to direct taxes, such as income tax. The scheme aims to:
- Reduce litigation: It provides an opportunity for taxpayers to settle ongoing disputes with the government, thereby reducing the burden of prolonged litigation.
- Faster Resolution: It encourages taxpayers to resolve their issues swiftly by offering incentives for quick settlement.
Legal Basis:
The notification has been issued under sub-section (2) of section 88 of the Finance (No. 2) Act, 2024. The scheme is a continuation of the government’s efforts to ease the tax compliance burden and ensure a smoother tax administration process.
Key Benefits:
- Settle tax disputes at various appellate forums, including the Income Tax Appellate Tribunal (ITAT), High Courts, and the Supreme Court.
- Offers reduced interest and penalties, giving taxpayers a cost-effective way to resolve their issues.
- Promotes faster clearance of long-pending cases, helping both the government and taxpayers save time and resources.
This scheme presents a significant opportunity for taxpayers facing direct tax disputes to reach amicable resolutions, clearing the way for better tax compliance and reducing the backlog of cases in various tax tribunals and courts.
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