The Direct Tax Vivad Se Vishwas Scheme, 2024 is a legislative framework introduced by the Central Government of India to resolve pending income tax disputes. This scheme allows taxpayers to settle tax disputes by paying a certain amount, depending on the nature of the dispute, and get relief from penalties, interest, and prosecution. Below is a detailed breakdown of sections 88 to 99 of the Scheme, providing clarity on its provisions, terms, and procedures.
1. Short Title and Commencement (Section 88)
- This Scheme is called the Direct Tax Vivad Se Vishwas Scheme, 2024.
- It will come into force on a date notified by the Central Government. (Notified w.e.f 1 October 2024, Notification No. 103/2024, dated September 19, 2024)
- Rules and forms Notified
2. Definitions (Section 89)
This section defines key terms used throughout the Scheme:
| Term | Definition |
|---|---|
| Appellant | A person whose case involves pending appeal, writ petition, or special leave petition, or who has filed objections before the Dispute Resolution Panel (DRP), or revision application under section 264 of the Income-tax Act. |
| Appellate Forum | Refers to the Supreme Court, High Court, Income-tax Appellate Tribunal (ITAT), or Commissioner (Appeals) or Joint Commissioner (Appeals). |
| Declarant | A person who files a declaration under section 91. |
| Disputed Tax | The tax payable by the appellant if the pending appeal or petition were to be decided against them, including tax disputes under various conditions. |
| Specified Date | The 22nd day of July, 2024. |
| Tax Arrear | The aggregate amount of disputed tax, interest, penalty, or fee. |
3. Amount Payable by Declarant (Section 90)
This section outlines the amounts payable by the declarant under the scheme, based on the nature of the tax arrear and the time of payment.
4. Filing of Declaration and Particulars to be Furnished (Section 91)
- The declaration must be filed by the declarant in the prescribed format to the designated authority.
- Upon filing, pending appeals or objections before appellate forums will be deemed withdrawn once the certificate is issued under Section 92.
- The declarant must also withdraw any other appeals or petitions related to the dispute.
The declarant must furnish an undertaking to waive any further claims or legal remedies regarding the tax arrear.
5. Time and Manner of Payment (Section 92)
The designated authority will:
- Determine the amount payable within 15 days of receiving the declaration.
- Issue a certificate with the particulars of the tax arrear and the amount payable.
- The declarant must pay this amount within 15 days of receiving the certificate and provide proof of payment.
Once the amount is paid, the order issued by the designated authority is conclusive and cannot be reopened under the Income-tax Act or any other law.
6. Immunity from Penalty, Interest, and Prosecution (Section 93)
The designated authority will not initiate any penalty, interest, or prosecution proceedings related to the tax arrear once the declarant has complied with the payment terms.
7. No Refunds Allowed (Section 94)
- Amounts paid under the declaration are non-refundable.
- However, if the declarant has paid more than the amount required under the scheme, they are entitled to a refund of the excess, but no interest will be provided on such refunds.
8. No Benefit, Concession, or Immunity (Section 95)
Except for what is expressly provided under Section 92(3) or Section 93, no other benefit, concession, or immunity will be given to the declarant regarding any other proceedings.
9. Scheme Not Applicable in Certain Cases (Section 96)
Scheme not to apply in certain cases.
96. The provisions of this Scheme shall not apply—
| (a) | in respect of tax arrear,— |
| (i) | relating to an assessment year in respect of which an assessment has been made under sub-section (3) of section 143 or section 144 or section 147 or section 153A or section 153C of the Income-tax Act on the basis of search initiated under section 132 or section 132A of the Income-tax Act; | |
| (ii) | relating to an assessment year in respect of which prosecution has been instituted on or before the date of filing of declaration; | |
| (iii) | relating to any undisclosed income from a source located outside India or undisclosed asset located outside India; | |
| (iv) | relating to an assessment or reassessment made on the basis of information received under an agreement referred to in section 90 or section 90A of the Income-tax Act, if it relates to any tax arrear; |
| (b) | to any person in respect of whom an order of detention has been made under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974) on or before the date of filing of declaration: |
| Provided that— |
| (i) | such order of detention, being an order to which the provisions of section 9 or section 12A of the said Act do not apply, has not been revoked on the report of the Advisory Board under section 8 of the said Act or before the receipt of the report of the Advisory Board; or | |
| (ii) | such order of detention, being an order to which the provisions of section 9 of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the review under sub-section (3) of section 9, or on the report of the Advisory Board under section 8, read with sub-section (2) of section 9, of the said Act; or | |
| (iii) | such order of detention, being an order to which the provisions of section 12A of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the first review under sub-section (3) of that section, or on the basis of the report of the Advisory Board under section 8 read with sub-section (6) of section 12A, of the said Act; or | |
| (iv) | such order of detention has not been set aside by a court of competent jurisdiction; |
| (c) | to any person in respect of whom prosecution for any offence punishable under the provisions of the Unlawful Activities (Prevention) Act, 1967 (37 of 1967), the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985), the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988), the Prevention of Corruption Act, 1988 (49 of 1988), the Prevention of Money-laundering Act, 2002 (15 of 2003), has been instituted on or before the filing of the declaration or such person has been convicted of any such offence punishable under any of those Acts; | |
| (d) | to any person in respect of whom prosecution has been initiated by an income-tax authority for any offence punishable under the provisions of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023) or for the purpose of enforcement of any civil liability under any law for the time being in force, on or before the filing of the declaration or such person has been convicted of any such offence consequent to the prosecution initiated by an income-tax authority; | |
| (e) | to any person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 (27 of 1992) on or before the date of filing of declaration. |
The Direct Tax Vivad Se Vishwas Scheme, 2024, provides an effective mechanism for taxpayers to resolve disputes by settling pending litigation with the tax department. By offering a clear and concise payment structure along with immunity from penalties and prosecutions, this scheme is a practical way for taxpayers to clear their dues and reduce prolonged litigation, ensuring greater tax compliance.
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