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

In order to bring early resolution of the disputes pending between taxpayers and the income tax (I-T) department, the Ministry of Finance rolled out Vivad Se Vishwas Scheme 2024 in October this year.

After enactment of the scheme, the department received a string of queries from the taxpayers seeking guidance in respect of these provisions. Some were unsure whether they can avail benefit of  this scheme while the matter is already pending before a High Court or a Tribunal, while some did not know whether the same rule applies to the review petitions as well. 

In order to address these queries and more, the Income Tax Department recently released a set of FAQs i.e., frequently asked questions, and uploaded them on its portal. 

Here, we have reproduced some of the common doubts which the taxpayers have in relation to the dispute resolution scheme aka Direct Tax Vivad Se Vishwas (DTVSV) Scheme 2024. 

Before applying for this scheme, if a taxpayer's appeal was disposed off or dismissed, can one still opt for it?

Yes, such cases are eligible for settlement under the Scheme so long as the appeal was pending as on July 22, 2024. Disputed tax will be calculated in the same manner as if the appeal pending on 22.7.2024 is yet to be disposed off.

If a taxpayer applied for this scheme and after that, an appeal was disposed off by the concerned authority. Is this case eligible for settlement?

Yes, this case would also be eligible for settlement.

Time limit for filing of appeal expired before July 22, 2024 but an appeal along with application for condonation of delay has been filed after this date. Can the taxpayer opt for the scheme in such a case?

No. Appeal has to be pending as on July 22, 2024 for a taxpayer to opt for the Scheme. Accordingly, such cases shall not be eligible.

What if an appeal was filed before July 22 and it was admitted by allowing condonation of delay prior to opting for the scheme. Can a taxpayer still avail the benefit under Vivad Se Vishwas scheme?

Yes. The taxpayer can opt for settlement under the Scheme in such cases.

Whether appeal filed against intimation is pending as on July 22, 2024 is eligible for the DTVSV Scheme, 2024?

Yes. Any appeal filed against intimation u/s 143( I) of the Act and pending as on July 22, 2024 is eligible for settlement under the Scheme. 

For the unversed, an intimation under section 143 (1) serves as a preliminary assessment of the taxpayer's income tax return filed for a financial year.

When review petitions are pending before High Courts or Supreme Court, whether those cases are eligible for settlement under the Vivad Se Vishwas Scheme, 2024?

No, pendency of review petition does not fall under this ambit. So, it would not tantamount to pendency of an appeal.

Can the scheme can be availed when the proceedings are pending before Income Tax Settlement Commission (ITSC)?

No, taxpayer is not permitted to avail settlement under Vivad Se Vishwas Scheme if the proceedings are pending before ITSC.

For further details, taxpayers can access the income tax department's document here.